Nature loss could cut mining, power earnings by a quarter, Barclays finds

By Virginia Furness

LONDON (Reuters) -Company earnings could fall by as much as 25% over five years due to nature degradation, Barclays said, as rising input costs and operational disruptions driven by policy changes and worsening environmental conditions begin to bite.

According to an exploratory stress test conducted by Barclays Bank on a portfolio of mining and power companies, transition risks, such as higher water prices, stricter pollution controls and the expansion of protected areas, along with droughts and flooding, increasingly pose a risk to operations.

Barclays analysed 250 operational mines linked to 30 mining clients and around 9,000 power generation facilities from 40 European clients, and found both sectors faced notable earnings declines over five years.

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