The Impact of Climate Change on Resource-Sector Listed Companies in Thailand

While the financial materiality of climate change is globally recognized, empirical evidence on firm-level resilience in emerging economies remains limited. This study addresses this gap by investigating the financial impacts of physical climate risks on resource-sector companies listed on the Stock Exchange of Thailand. Using panel data from 2012 to 2024, we employ regression analysis to assess the effects of rising average temperature (TEMP), rainfall variability (RF), and humidity (HMD) on Return on Equity (ROE). Our results reveal that rising temperature has a significant, adverse impact on financial performance. Contrary to common assumptions, the impacts of rainfall variability and humidity are not statistically significant at the sector level. The operational efficiency, measured by the Fixed Assets to Total Assets ratio (FATA), acts as a powerful moderating factor, enabling firms to neutralize specific climate-induced disruptions.