India hosts the highest share of corporate assets exposed to climate-related socio-economic risks, with over $1 trillion in market capitalisation across major global indices located in the country, according to new data published Tuesday.
Research by Verisk Maplecroft, using its Climate Hazard and Vulnerability Index (CHVI), estimates that up to $1.14 trillion in corporate value across the S&P 500, DAX, CAC 40, Nikkei 225 and FTSE 100 indices is situated in 48 countries deemed ‘very high’ risk by 2050 under an intermediate emissions scenario.
India accounts for over 95% of that exposure, largely driven by its vulnerability to extreme weather, infrastructure stress, and economic sensitivity to climate factors such as poverty and agriculture.
In comparison, only $34.8 billion in current market value across those indices is located in such high-risk countries under today’s climate, underscoring the projected increase in long-term exposure if emissions trajectories continue.
“Markets tend to price risk at the corporate level, yet climate vulnerabilities manifest where assets are located, not just where companies are domiciled,” said Franca Wolf, Principal Markets Analyst at Verisk Maplecroft.
The CHVI measures risk across three dimensions: exposure to eight climate hazards, sensitivity of populations based on socio-economic indicators, and a country’s adaptive capacity. The analysis identifies India, Nigeria, Kenya, Bangladesh and Pakistan as among the most vulnerable emerging markets.
India’s elevated exposure is attributed to its dependence on climate-sensitive sectors, including agriculture, its large low-income population, and rising physical climate threats like extreme heat, drought, and flooding. Within the S&P 500 alone, assets worth $818 billion are exposed to India’s climate risk.
“While many companies report on their physical exposure to climate hazards, lesser understood socio-economic factors do not feature as part of corporate strategies, creating a blind spot for long-term resilience planning,” said Will Nichols, Head of Climate and Resilience at Verisk Maplecroft.
The report warns that corporate supply chains and global operations leave Western firms vulnerable, even when headquartered in countries considered climate “safe havens.” The Asset Risk Exposure Analytics (AREA) platform used for the study draws on data from four million asset locations and 85 sustainability and political risk indicators.
By 2050, under the same emissions scenario, countries like Ethiopia, Kenya, Bangladesh, India and Pakistan are projected to rank among the highest risk investment locations. Other countries just below the ‘very high’ risk threshold include Indonesia and the Philippines.
The CHVI indicates that sub-Saharan Africa remains the region at greatest risk, with Chad, Niger, South Sudan, Somalia and Sudan among the most vulnerable by mid-century. However, due to the scale of corporate presence, it is India’s exposure that dominates global investor risk.
Despite stronger adaptive capacity, Western markets are not immune to the cascading effects of instability, migration, and political volatility in more vulnerable geographies.
“The interconnected nature of modern corporate operations, supply chains and investment networks means that disruption brought about by climate change in the most exposed jurisdictions will have a major impact the world over,” Nichols said.
The report’s market capitalisation estimates are based on March 2025 valuations.
