The report by investment and ratings firm RepuTex, which looked at the country's top 200 listed companies, found that only one fifth were prepared for those risks, while just 3.5% were considered "growth leaders."

In its report Identifying Carbon Value: The Carbon Responsiveness of ASX 200 Stocks, RepuTex analyses the impact of regulatory and physical risks of climate change on a company's bottom line, along with each company's management response such as energy efficiency and technology adoption strategies.

The materials sector was the best performing sector of the 11 industries investigated. Investment in technology and offsets has increased, with credit generation capacities providing a significant opportunity. However, preparedness across the sector is mixed.

Overall performance in the financial sector is positive, with the industry receiving the second best score. However, RepuTex suggests the bulk of activities to reduce a company's carbon footprint in this sector appear to be focused on brand enhancement via carbon neutrality initiatives.

The sector could better prepare itself through strategies such as investing in energy efficient technologies.

As a whole, utilities represent negative value, despite high awareness among them of carbon risk and public scrutiny due to their high carbon intensity. It was the worst prepared industry of the 11 examined for the report.

In comparison to the materials sector, the majority of utility companies have failed to adequately address efficiency and technology vulnerabilities.

Further comparison between materials and utilities sectors demonstrates "micro carbon management capacity" is more robust within the materials companies, therefore impacting overall sector value.

RepuTex research head Hugh Grossman said although business leaders are aware of climate change risks, many companies are yet to fully understand the financial impact of carbon risks and opportunities on their competitive position and bottom line.

"Australian companies must understand their carbon risk and quantify bottom-line impacts in order to remain competitive as new drivers - such as carbon intensity, energy efficiency and credit generation capacity - begin to impact company value," said Grossman.