Feeling the heat

“And all over the world, strangers talk only about the weather,” goes the Tom Waits lyric. But now it seems it is not only strangers but also company annual reports.

The Times says that FTSE 350 reports have seen a “twentyfold” increase in mentions of “extreme weather” since 2015. In fact, mentions have gone from 35, ten years ago, to 741 last year, and 350 mentions so far in 2025.

That is a lot of weather worry. It’s affecting everything from the sale of pasties at Greggs to Rio Tinto’s iron ore mining in Australia.

“And you know that it’s the beginning, And you know that it’s the end,” sings Waits in the closing verse of ‘Strange Weather’. Let’s hope he’s no prophet.

Applying the heat

Over in Europe, activist investors are making their weather, with campaigns up to 61 in the first six months of this year compared with 56 last year.

That said, activists are securing fewer board seats: only 11 this year so far, compared with more than double that—30—last year.

Josh Black, editor in chief of Diligent Market Intelligence, says: “Despite the rise in activist activity, this has not translated into boardroom seats, with only 11 board seats secured versus 30 in the same period last year.”

However, Black adds: “These findings demonstrate that activists aren’t waiting on the sidelines for the perfect conditions. Instead, they’re becoming more opportunistic and assertive, pushing for strategic shifts and demanding great accountability.”

In the hot seat

US boards beware: “In today’s climate of heightened polarisation, intensifying public scrutiny and shifting political dynamics, companies that engage in political spending face significantly greater risks than in the past.”

The warning comes from the US Center for Political Accountability in an article ringing an alarm bell over the dangers now inherent in spending on politics.

Naturally, the writers, Bruce Freed and Jeanne Hanna, raise Tesla’s collapse in sales following Elon Musk’s involvement in the current Donald Trump administration (the governance questions there for the board are endless, though they seem to have settled on granting Musk $29bn in shares as an answer).

Another example is Disney’s feud with Florida governor Ron DeSantis.

Hanna and Freed have a report on how to deal with all of this and argue companies must “adopt governance and risk management practices grounded in ethical principles, risk mitigation and long-term value”. Sound advice, though for some it seems easier said than done.