Exelon Corporation (EXC), The Southern Company (SO): Did Climate Change Cause the Moore Tornado?

Drought reduced The Southern Company (NYSE:SO)’s 2008 hydroelectric power generation by roughly 50%, forcing the company to meet demand from other generating sources at a replacement cost of about $200 million.

Under Armour Inc (NYSE:UA) experienced elevated retail inventory levels in the 2011-2012 winter due to “the impact of unseasonably warm weather,” cutting into growth by as much as 2 percentage points. This was part of the reason the company had expected 2012 net revenues to come in at the low end of its long-term-growth target.

Droughts in Bunge Ltd (NYSE:BG)’s main growing areas in Brazil drove a Q4 2010 loss of $56 million in the company’s sugar and bioenergy segments.

Meanwhile, General Electric Company (NYSE:GE) is participating in a major risk assessment exercise with PricewaterhouseCoopers and the United Nations Office for Disaster Risk Reduction. The company was selected, along with 13 other companies, because of its influence on the global economy and exposure to climate change effects. The result is a landmark risk reduction report that should be the bible of all companies doing business on this warming orb.

Lest it sound all doomy and gloomy, there is plenty of investment opportunity out there in climate change solutions providers. But failure to consider risk would be a monumental error, and the stakes just keep getting higher.

The devastation in Moore is heartbreaking. Whether it be a direct result of climate change or not, the fact is that we have the tools at our disposal to mitigate the risk of more such tragedies, and private industry will play a tremendous role in that endeavor. We can and should invest in a brighter future for us all.

The article Did Climate Change Cause the Moore Tornado? originally appeared on Fool.com and is written by Sara Murphy.

Sara Murphy has no position in any stocks mentioned. Follow her on Twitter @SMurphSmiles. The Motley Fool recommends Exelon, Southern Company, and Under Armour. It owns shares of General Electric and Under Armour.

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