Insights on Climate, Climate Risk, Adaptation and Artificial Intelligence (AI)

An introduction to our latest findings and developments in climate change, risk management, adaptation strategies, and the role of artificial intelligence in shaping a sustainable future.

How Firms Adapt to Physical Climate Risk: New LLM-Based Evidence from 13,500 US Companies

RESEARCH PAPERS
May 4, 2026

Analyzing 255 million paragraphs from 128,860 Form 10-K filings (2003–2025), this paper introduces the first scalable LLM-based measure of firm-level climate adaptation. Pre-event physical protection mitigates hurricane stock market losses by up to 37%, but financially constrained firms underadapt precisely when it matters most.