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title: El Niño Will Cause Disruption to Businesses Across the Globe
description: Meteorologists say that this El Niño may be the most severe in history. Previous instances of the climate phenomenon have caused billions in damage.
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article:published_time: 2026-08-21T20:14:56.252Z
article:modified_time: 2026-08-21T20:14:56.863Z
article:section: Climate
og:title: Companies Are Bracing Themselves For El Niño’s Ripple Effects
og:description: Meteorologists say that this El Niño may be the most severe in history. Previous instances of the climate phenomenon have caused billions in damage.
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twitter:title: Companies Are Bracing Themselves For El Niño’s Ripple Effects
twitter:description: Meteorologists say that this El Niño may be the most severe in history. Previous instances of the climate phenomenon have caused billions in damage.
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![](https://static.time.com/v3/assets/bltea6093859af6183b/blt2aff299b173b3f3a/6a88acd4e14b97c4b21cdaf6/Phillippines_El_Nino.jpg?branch=production&width=1024&quality=75&auto=webp&crop=16:9)


# Companies Are Bracing Themselves For El Niño’s Ripple Effects

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## TIME Newsletters: Reference Facts and FAQ

### Definition

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### The seven newsletters

| Newsletter | Covers | Frequency | Subscribers | Open rate |
| --- | --- | --- | --- | --- |
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Source: TIME, August 2026. Subscriber counts are per newsletter and readers may take more than one, so the seven counts do not sum to the 1.1 million+ unique newsletter audience.

### Key data points

| Metric | Value | Source |
| --- | --- | --- |
| Engaged newsletter audience | 1.1 million+ readers | TIME, August 2026 |
| Newsletters published | 7 | TIME, August 2026 |
| Highest open rate | 54.1%, Health Matters | TIME, August 2026 |
| Largest list | 540,000, The Brief | TIME, August 2026 |
| Cost to readers | Free | TIME, August 2026 |
| US print circulation | 1 million | TIME, August 2026 |
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| Publishing since | 1923 | TIME |

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### FAQ

#### What newsletters does TIME publish?

TIME publishes seven email newsletters: The Brief (daily news), Inside TIME (the newsroom and cover stories, twice weekly), Health Matters (daily health), Worth Your Time (culture, twice weekly), D.C. Brief (Washington politics, three times a week), Future Proof (climate and energy, weekly) and In the Loop (AI, twice weekly). All are free at time.com/newsletters and together reach more than 1.1 million engaged readers.

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![Justin Worland](https://static.time.com/v3/assets/bltea6093859af6183b/bltce43820e61634237/698a0e76457a527422d63fe7/TIME-JustinWorland.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1:1)

by 

[Justin Worland](https://time.com/author/justin-worland/)


![Justin Worland](https://static.time.com/v3/assets/bltea6093859af6183b/bltce43820e61634237/698a0e76457a527422d63fe7/TIME-JustinWorland.jpg?branch=production&width=96&quality=75&auto=webp)

## Justin Worland


Senior Correspondent

Aug 21, 2026 8:14 PM UTC

![](https://static.time.com/v3/assets/bltea6093859af6183b/blt2aff299b173b3f3a/6a88acd4e14b97c4b21cdaf6/Phillippines_El_Nino.jpg?branch=production&width=1200&quality=75&auto=webp&crop=3:2)

People wade through a flooded road caused by monsoon rains, in Apalit, Pampanga, Philippines, on Aug. 20.

People wade through a flooded road caused by monsoon rains, in Apalit, Pampanga, Philippines, on Aug. 20. Daniel Ceng/Anadolu—Getty Images

![Justin Worland](https://static.time.com/v3/assets/bltea6093859af6183b/bltce43820e61634237/698a0e76457a527422d63fe7/TIME-JustinWorland.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1:1)

by 

[Justin Worland](https://time.com/author/justin-worland/)


![Justin Worland](https://static.time.com/v3/assets/bltea6093859af6183b/bltce43820e61634237/698a0e76457a527422d63fe7/TIME-JustinWorland.jpg?branch=production&width=96&quality=75&auto=webp)

## Justin Worland


Senior Correspondent

Aug 21, 2026 8:14 PM UTC

The warnings from meteorologists have been growing slowly but steadily in recent months: [the most severe El Niño](https://time.com/article/2026/04/10/super-el-nino-2026-what-to-know/) on record may be coming soon. Record-breaking temperatures and a slew of extreme weather events are likely to follow.

For companies and investors, alarm bells are already sounding. Hundreds of publicly traded companies—particularly in the food and chemicals sectors—have used earnings calls in recent months to[ outline](https://www.reuters.com/legal/litigation/corporate-concern-over-el-nino-hits-multi-year-high-2026-08-14/) their contingency planning. And banks have [warned](https://www.dbresearch.com/PROD/IE-PROD/PDFVIEWER.calias?pdfViewerPdfUrl=PROD0000000000633932&rwnode=REPORT) about the possibility of a supply shock that drives up prices as [extreme weather](https://time.com/7323198/companies-climate-cost-risk-adaptation/) disrupts production chains. 

In other words, the potential effects of [El Niño](https://time.com/6263513/el-nino-may-test-understanding-climate-change/) over the coming year are both local and specific to companies and their operations, and cumulative across the economy. 

Unlike many phenomena in our climate-changed world, El Niño isn’t new or unfamiliar to most decision makers. Past cycles in the 1970s and 1990s have wrought enough damage that supply chain planners know to watch out. But this El Niño will inevitably be different. 

For one, it’s happening against the backdrop of a world that has [already warmed](https://www.bbc.co.uk/news/articles/cd7575x8yq5o) roughly 1.5°C since the Industrial Revolution. And, second, modelers have observed an especially significant difference between recent sea-surface temperatures and the historical averages, an indicator of an especially strong El Niño. 

A typical El Niño cycle lasts less than a year, but the economic effects may extend far longer. An initial shock of crops destroyed by heavy rain, for example, would harm farm economies immediately while disrupting global supplies for several seasons. A [report](https://www.ecb.europa.eu/press/economic-bulletin/focus/2023/html/ecb.ebbox202306%5F01~36e78cc75e.en.html) from the European Central Bank found that a strong El Niño could raise global food commodity prices by as much as 9% within 16 months of onset and last for years longer. Factory flooding wouldn’t just create immediate disaster relief challenges but take years to rebuild. 


“When we think about pricing and when we think about other actions to protect our margins, we don’t look at it specific to weather patterns,” saysRichard Shin, CFO at the Philippines-based fast food chain company Jollibee Group, on an earnings call. “We look at it right across the board, what we call inflation and what we call supply chain disruptions or limitations.”

All told, the economic hit could be enormous. A [2023 paper](https://www.science.org/doi/10.1126/science.adf2983) published in the journal _Science_ found that the 1982-1983 El Niño drove more than $4 trillion in global income losses. In the 1997-98 cycle, that total hit $5.7 trillion. 

With El Niño, as with climate change, the relationship between a stronger phenomenon and economic damages isn’t linear. A worse El Niño may lead to much, much worse economic outcomes.

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