Climate Change
Study reveals how much carbon damage would cost corporations if they paid for their emissions
The world’s corporations produce so much climate change pollution, it could eat up about 44% of their profits if they had to pay damages for it, according to a study by economists of nearly 15,000 public companies.
The “corporate carbon damages” from those publicly owned companies analyzed — a fraction of all the corporations — probably runs in the trillions of dollars globally and in the hundreds of billions for American firms, one of the study authors estimated in figures that were not part of the published research. That’s based on the cost of carbon dioxide pollution that the United States government has proposed, the Associated Press reported.
Nearly 90% of that calculated damage comes from four industries: energy, utilities, transportation and manufacturing of materials such as steel. The study in Thursday’s Journal Science by a team of economists and finance professors looks at what new government efforts to get companies to report their emissions of heat-trapping gases would mean, both to the firm’s bottom lines and the world’s ecological health.
Earlier this year, the European Union enacted rules that would eventually require firms to disclose carbon emissions and the United States Securities and Exchange Commission and the state of California are looking at similar regulations.
Study co-author Christian Leuz, a finance and accounting professor at the University of Chicago, said the idea “of shining the light on corporate activities that have costs to society is very powerful, but it is not enough to save the planet.” An earlier study of his found that after fracking firms disclosed their pollution rates, those contamination levels dropped 10% to 15%, he said.
The idea is consumers and stockholders would see the damage and pressure firms to be cleaner, Leuz said.
Outside economists agreed.
Leuz and his colleagues used a private analysis firm that finds or estimates carbon emissions of some publicly owned companies and analyzed the carbon pollution from 14,879 firms. Then they compared them to company revenues and profits.
That calculation shows “which activities are particularly costly to society from a climate perspective,” Leuz said. Still, he cautioned that “it would not be correct to just blame the companies. It is not possible to divide responsibility for these damages between the firms that make the products and consumers who buy them.”
The calculations are for only a fraction of the world’s corporations, with many public companies not included and private firms not listed at all, Leuz said.
The economists didn’t identify or tease out single companies but instead grouped firms by industry and by country. And they only used direct emissions, not what happens downstream. So the gas in a person’s car does not count toward an oil company’s emissions or corporate carbon damages.
The calculations use the US Environmental Protection Agency’s $190 cost per ton for carbon dioxide emissions and the study doesn’t give a bottom line number in dollars, just in percent of profit and revenues. Only when asked by The Associated Press did Leuz estimate it in the trillions of dollars.
At $190 a ton, the utility industry averaged damages more than twice its profits. Materials manufacturing, energy and transportation industries all had average damages that exceeded their profits.
On the opposite end, the banking and insurance industries averaged climate damages that were less than 1% of their profits.
When looking at companies based on countries, Russia and Indonesia were the top for corporate climate damages, while the United Kingdom and the United States were the lowest. Leuz said that reflects the age and efficiency of the companies and which type of industries were based in countries.
Several outside experts said the study made sense within certain limits, while a few found faults with some of the choices of what to count, saying not counting downstream emissions is a problem. Because it doesn’t count those it “does not provide an incentive to reduce these to the level needed,” said Bill Hare, CEO of Climate Analytics, which studies global emissions and reduction efforts.
“The results are important but perhaps not that surprising,” said Stanford University economist Marshall Burke. “The bigger take-home is the number of caveats that are needed to do this analysis, indicating what a mess our emissions accounting systems currently are.”
Appalachian State University’s Gregg Marland, who helps track global emissions by country, said “good numbers do allow us to know who is producing the products that consumers want with the least contribution to climate change.”
Nobel prize winning economist Paul Romer, formerly of the World Bank and now at Boston College, said the damage estimates are useful but need to be interpreted accurately, “without the moralistic framing and induced urge to punish.”
Romer used the example of his move from New York to Boston. The initial move would go under the moving company’s corporate carbon damage, but when he took some books from his home they would not. Misusing corporate carbon damage figures could put the moving company out of business and he’d drive his stuff instead, so total carbon emissions would not be changed. Shifting to zero carbon fuel makes more sense, he said.
Climate Change
China evacuates thousands as Typhoon Narra brings torrential rain
Flooding and waterlogging were also reported in Pingxiang City and Ningming County, with rural roads submerged and farmland inundated.
Authorities in China’s southern Guangxi Zhuang Autonomous Region are evacuating residents trapped by flooding as Typhoon Narra brings heavy rain to the area.
In Shangsi County of Fangchenggang City, floodwater reached around 1.5 metres in some urban areas, inundating major roads and leaving several villages without drinking water, electricity or communications.
Local authorities deployed 50 militiamen to search for and rescue residents overnight using rubber boats and relief supplies. At least 203 people have been safely evacuated.
Flooding and waterlogging were also reported in Pingxiang City and Ningming County, with rural roads submerged and farmland inundated.
More than 400 militiamen were deployed to help evacuate residents, including door-to-door operations. In one severely affected village in Ningming, inflatable boats were used to ferry villagers across a flooded river.
In Youyi Township of Pingxiang, rescuers helped elderly people and children with limited mobility reach safer areas. By Monday morning, local militiamen had assisted 1,499 people trapped by the floods.
Typhoon Narra, the 19th typhoon of the year, was located in the Beibu Gulf early Monday, about 185 kilometres southwest of Beihai, with maximum winds of 23 metres per second near its centre.
The storm was expected to move eastward before turning north, travelling at 5 to 10 kilometres per hour toward coastal areas of Guangxi and western Leizhou Peninsula in neighbouring Guangdong Province.
Climate Change
Afghanistan floods affect more than 97,000 people so far this year
At least 97 people have died and 331 have been injured, while more than 12,000 homes have been damaged or destroyed.
More than 97,000 people have been affected by natural disasters across Afghanistan this year, with floods and flash floods causing most of the devastation, according to the United Nations.
The UN Office for the Coordination of Humanitarian Affairs (OCHA) recorded 97,320 people affected between January 2 and August 3 across all 34 provinces and at least 202 districts.
At least 97 people have died and 331 have been injured, while more than 12,000 homes have been damaged or destroyed.
Floods and flash floods affected nearly 88,000 people, far more than any other type of disaster. Heavy snow, landslides, thunderstorms and earthquakes have also caused deaths and destruction.
Eastern Afghanistan has suffered the greatest impact, with more than 51,000 people affected. Mountainous terrain, narrow valleys and poor road networks leave many communities particularly vulnerable to sudden flooding and landslides.
The disasters have also damaged farmland, irrigation systems, roads and livestock, threatening the livelihoods of rural families and worsening food insecurity.
Afghanistan is already facing a severe humanitarian crisis, with millions dependent on assistance for food, healthcare, shelter and clean water. The UN says funding shortages are limiting the ability of humanitarian agencies to respond to growing needs.
OCHA is seeking $1.71 billion to assist 17.5 million people under its 2026 humanitarian response plan, but the appeal remains severely underfunded.
Climate change is adding to the risks, contributing to more erratic rainfall, rising temperatures and faster snow and glacier melt. Experts say stronger early-warning systems, evacuation routes, flood-resistant infrastructure and support for rebuilding livelihoods are needed to reduce the impact of future disasters.
For many affected families, however, recovery remains difficult as each new disaster threatens to erase the limited progress made after the previous one.
Climate Change
US Midwest reels from deadly storms and historic floods
With more rain possible across parts of the Midwest, authorities say the recovery could take days or even weeks in the hardest-hit areas.
A powerful and prolonged spell of severe weather has battered parts of the United States, with torrential rain, record flooding, tornadoes and destructive winds leaving several people dead and causing widespread damage across the Midwest and Ohio Valley.
Indiana has emerged as one of the hardest-hit states. Authorities said at least five people had died by Saturday as days of heavy rain pushed rivers to historic levels. More than 28 centimeters of rain fell in some areas over two days, sending the White River above seven meters in parts of central Indiana and breaking records dating back to 1913.
Indianapolis experienced its worst flooding in more than 30 years, prompting hundreds of evacuations. Firefighters and other emergency crews used boats to rescue residents trapped by rising water, with at least 95 people and 45 pets rescued in the city by Saturday afternoon. More than a dozen counties declared local disasters, while hundreds more people were evacuated elsewhere in the state.
The flooding followed a major storm system that swept across Illinois, Indiana, Ohio, Kentucky and West Virginia earlier in the week. The system produced powerful winds, tornadoes and intense rainfall. Wind gusts reached about 159 km/h in Gary, Indiana, while tornadoes were reported near Chicago.
The storms also caused extensive power outages. More than 600,000 customers across parts of the Midwest were without electricity at the height of the storm, while blocked roads, fallen trees and damaged infrastructure hampered emergency response and cleanup operations.
Ohio was also severely affected. Flooding disrupted emergency services, while 16 inmates at a correctional facility were injured by a lightning strike. Officials warned that additional flooding and severe storms could continue as the region remained under threat from successive rounds of bad weather.
Illinois has experienced an especially active tornado season. More than 200 tornadoes have been reported across the state this year, a total that already exceeds the previous annual record for the state and places Illinois close to the national record for tornadoes in a single year.
The latest storms are part of a broader pattern of repeated severe-weather outbreaks across the United States in 2026. Earlier in the year, major tornado outbreaks affected the central and Midwestern states, while flooding and severe thunderstorms have repeatedly struck communities from the Plains and South to the Midwest.
Emergency officials have urged residents to avoid flooded roads and waterways, follow evacuation orders and remain alert for further warnings. In many communities, the immediate danger has shifted from the storms themselves to rising rivers, unstable structures, downed power lines and prolonged power outages.
With more rain possible across parts of the Midwest, authorities say the recovery could take days or even weeks in the hardest-hit areas.
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