Equatorial Energia (EQTL3) can be achieved. It operates in the distribution, generation, transmission and sale of electrical energy in the states most affected by the drought: Maranhão, Pará, Piauí, Alagoas, Amapá and Goiás. Furthermore, according to the agIt isAccording to Moody’s risk rating, companies in this sector now have less financial flexibility to deal with a climate event than they had in the past. úlast “edition” of El Niño, in 2016.
Food and beverages lose out as extreme weather events affect agricultural production. “Many companies depend on agricultural raw materials for their products”, says André Vasconcellos. This results in increased production costs and supply chain disruptions. This group includes Camil (CAML3) São Martinho (SMTO3), Jalles Machado (JALL3 and JALL4) and Ambev (ABEV3). Camil, for example, is very dependent on the rice harvest. Ambev, for barley and corn. Furthermore, the lack of climate predictability (with warm winters and sudden cold snaps in summer) can harm the company’s sales logistics.
Tourism is harmed. Tourist destinations can be affected by floods and droughts – as is happening now in the Amazon. This represents lost revenue for companies related to hotels, restaurants and tourist services. On the stock market, one of the most affected could be CVC Brasil (CVC33).
Highway operators, such as CCR (CCRO3) and Ecorodovias (ECOR3) do not escape. They may suffer losses from rain, floods and closed roads.
Civil construction could be harmed. Floods, storms and landslides can cause damage to properties and infrastructure, affecting companies related to construction and repairs. It also delays ongoing works. In this case, according to Santander, Tecnisa (TCSA3), JHSF (JHSF3), Cury (CURY3) and Eztec (EZTC3) will lose.
Health companies are also in the crosshairs. With global warming and drastic changes in temperature, the risk of the emergence of new diseases and epidemics increases and this can affect the growth horizon of companies in the sector. In the pandemic, insurance companies have already suffered a lot and may be affected again, with increased expenses, just like insurance companies. Investors in Hapvida (HAPV3) and Qualicorp (QUAL3) should pay attention.