Water sector among least vulnerable to climate impacts, Fitch forecasts

Water distribution and transmission was among the least vulnerable industry groups in terms of exposure to long-term, climate related transition risks, according to Fitch Ratings.

The credit rating agency scored 94 corporate sectors and sub-sectors between 0 (lowest vulnerability) and 100 in which water distribution and transmission was currently at a forecast of 15 by 2035 rising to 20 by 2050 alongside telecoms, hydro electricity and recycling.

According to Fitch, corporates with a score of 45 or above in 2035 face “elevated” climate risk. Among the most vulnerable at scores of 90 for 2035 and 2050 was coal-fired generation in the US and landfill for which climate risk factors “pose an existential or default-equivalent threat to the credit profile”.