Social risks bigger than climate for tech sector

For the tech sector, social risks are a bigger long-term threat than climate concerns, says Fitch Ratings.

In a new report, the rating agency said that companies in the global technology, media and telecom sector have relatively low carbon intensity, which means that their exposure to climate risks is lower than many other industries.

“Social, rather than climate, factors will become a greater long-term risk for the sector due to larger potential losses from cyber attacks and growing regulatory scrutiny,” Fitch said.

Companies in the tech sector face increased exposure to hacking attacks that could inflict both physical and financial damage.

So far, the financial costs of cyber breaches have proved manageable, Fitch said. However, it noted that the potential for damage from these sorts breaches may see these costs rise.

Additionally, the rating agency said it expects mental and physical health to become an increasingly important topic for tech firms.

“This will require continued investments to respond to developments such as a growing regulatory focus on social media usage by children and the proximity of mobile towers to densely populated areas,” it said.

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