Impact of Climate Change on Companies: A Case Study of China Yangtze Power

DOI: https://doi.org/10.62517/jbm.202509522

Author(s)

Yuxuan Ning , Xinyue Zhao , Guochao Wan*

Affiliation(s)

School of Management, Chengdu University of Information Technology, Chengdu, Sichuan, China *Corresponding author

Abstract

This study uses the extreme drought in the Yangtze River Basin in 2022 as a case study to investigate the effects of physical risks brought on by climate change on China Yangtze Power Co., Ltd. By constructing an event intensity-duration matrix the research identifies significant climate events and analyzes their financial and operational consequences. The drought led to a marked reduction in runoff causing a decrease in hydropower generation which resulted in a 6.54% drop in revenue and an 18.89% decline in net profit in 2022. In response the company implemented strategies such as cascade reservoir joint operation and divestment of financial assets to mitigate losses. The case underscores the materiality of climate risks to corporate performance and highlights the need for integrating climate risk management into corporate governance.

Keywords

Climate Change Physical Risks; Dual Materiality; ESG Report

References

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