“The physical risk of climate change in Latin America is particularly significant for industries with fixed assets,” Moody’s said in a report.
“Other industries with high water consumption, such as beverage producers, will face higher costs. Oil companies in Mexico and the Caribbean are highly exposed to hurricanes,” he said.
Unprecedented waves of drought seen in the region in the last decade also suffocate the productive capacity of grains in countries such as Mexico, Brazil and Argentina, in view of the high need for water resources to sustain themselves, he pointed out.
In Chilehe stressed, where the low rainfall in recent years caused an acute crisis, the essential ones could also be impacted mining operations; while Peru and Colombia face threats from changes in ocean currents.
In Argentinaone of the world’s largest grain producers, analysts say the driest conditions in nearly 30 years in major agricultural regions are making it difficult to plant cornwhere memories of the “great drought” of 2008/09 grow.
Brazil, Secondly, suffers extreme phenomena such as floods and torrential rains that increase the difficulties of the mining and logistics industry, which may suffer more operational interruptions, the firm said.
Moody’s report added that Latin American banks “face indirect risks from investment and loan portfolios,” although the exposure to corporate loans linked to weather events is now around 11% of the total portfolio.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
