CNBC reports that Amazon "is warning investors that the climate crisis may have a material effect on its business.
"In the risk factors section of its 2023 financial filing released Friday, Amazon added language that says climate change could cause its sales and operating results to fluctuate, making it harder to sustain growth or resulting in decreased revenue … The company said climate change could lead to 'increased operating costs due to more frequent extreme weather events or climate-related changes, such as rising temperatures and water scarcity; increased investment requirements associated with the transition to a low-carbon economy; decreased demand for our products and services as a result of changes in customer behavior; increased compliance costs due to more extensive and global regulations and third-party requirements; and reputational damage resulting from perceptions of our environmental impact'."
The story notes that "the update reflects the growing climate threats and the costs they pose to businesses. Amazon first included climate change among its risk factors in its 2021 annual report, but this year, it added expanded disclosures."
- KC's View:
First, climate change is going to affect pretty much every business. Businesses that think not probably are deluding themselves. (Just as climate change is going to affect every person.)
Second, this warning seems pretty mundane compared to the one posted by Meta last week. CNBC wrote:
Mark Zuckerberg’s preference for mixed martial arts and water sports is not only a personal hazard, it’s also a risk to investors.
In its annual financial report for 2023 filed Friday, Meta disclosed a new risk factor that pertains to Zuckerberg and any other executives engaged in potentially dangerous hobbies.
“Mr. Zuckerberg and certain other members of management participate in various high-risk activities, such as combat sports, extreme sports, and recreational aviation, which carry the risk of serious injury and death,” Meta said. “If Mr. Zuckerberg were to become unavailable for any reason, there could be a material adverse impact on our operations.”