Correct Option (C)
Statement 1: The passage indicates that both governments and companies will face significant economic impacts due to climate change and the efforts to address it. This includes higher taxes, regulatory burdens, and the risk of "stranded assets." These implications necessitate adequate preparation by both entities to mitigate adverse economic consequences.
Statement 3: The passage explicitly states that a changing climate "could have a big impact on investors' returns." It details specific financial risks such as "stranded assets" for energy producers and "economic damage" to other industries from extreme weather events. This directly supports the inference that disregarding climate change poses a substantial risk for investors.
Incorrect Options:
Statement 2: The passage mentions that "Other industries could be affected by the economic damage caused by more extreme weather." However, it does not explicitly state or imply that these events will lead to a reduction in "overall economic growth" for governments and companies in the future. The passage describes potential damage to specific industries, not a universal or definitive reduction in economic growth.