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The Ripple Factor: Economic losses from weather extremes can amplify each other across the world
Weather extremes can cause economic ripples along the supply chains. If they occur at roughly the same time, the ripples start interacting and can amplify even if they occur at completely different places around the world, a new study shows. The resulting economic losses are larger than the sum of the initial events, the researchers find in computer simulations of a global economic network.
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Climate change abroad also affects the national economies
The German Environment Agency has completed a first-ever study of the climate risks for international trade relations. The study claims that the risks of climate change occurring abroad affect Germany's economy to at least the same extent as it does foreign economies. Six per cent (55 billion euros) of Germany’s imports and four per cent of its exports are tied to twelve countries or regions which are considered particularly vulnerable to climate change.
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Many major German companies underestimate the risks of climate change
The consequences of climate change pose economic risks for companies. A study by the German Environment Agency (UBA) shows that only about half of the companies, noted on the German stock market, report publicly on these risks. None of the 100 largest companies studied provides information on whether the corporate strategy is resilient to stronger climate change.
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