Investors Call for Companies to Disclose Climate Risk
| Mon Nov. 23, 2009 9:34 AM PST
What will climate change cost the US economy? To date, the political debate has been fixated almost exclusively on fears that carbon regulations will impose heavy burdens on American companies. But what about the costs that companies will incur if climate change continues unabated? Or the new opportunities that a carbon cap may create for some businesses, such as firms that make windmills or solar panels? Faced with a lack of reliable analysis of the full costs and benefits of both climate change and climate policies, a group of major investors wants the Securities and Exchange Commission to step in. On Monday, the investors wrote to the SEC asking the agency to come up with guidelines to help businesses properly account for climate-related factors that will affect their bottom lines.
The letter was signed by 20 institutional investors from the US and Canada who represent $1 trillion in assets. Signatories include the state treasurers from Oregon, North Carolina, Connecticut, Maryland and Vermont, Florida’s Chief Financial Officer, the Environmental Defense Fund, Ceres, a sustainable business coalition, and the California Public Employees’ Retirement System (CalPERS), the biggest public pension fund in the US. "CalPERS protects workers’ retirement benefits, and climate change poses both great risks and opportunities to these investments,” said CalPERS CEO Anne Stausboll in a statement. "The SEC should strengthen and enforce its current requirements so investors' decisions fully account for climate change’s financial effects."
Last month, the SEC issued new rules at the behest of Ceres and investor groups that require companies to disclose how climate regulation could affect their earnings, if investors request such information. But most companies haven't even started to assess these potential financial risks, in part because the tools for doing are still in their infancy. This latest investor request is an attempt to hurry up the process of ensuring that clmate change is factored into every company's balance sheet—and a sure sign that business leaders and investors believe some kind of climate regulation is coming, and coming soon.
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Comments
This is great review on
Submitted by gift ideas (not verified) on Mon Nov. 23, 2009 8:34 PM PST.
This is great review on climate risk.I remember in May 21, 2008 press release from California State Senator Dean Florez announced the approaching California Senate vote on Senate Bill 1550, “Corporations: Climate Risk Disclosure,” introduced by Sen. Florez.This is the part of this mission.Thanks for sharing such a great post here...
This is a terrible idea
Submitted by Anonymous (not verified) on Mon Nov. 23, 2009 9:16 PM PST.
Climate change is something we have dealt with throughout human history. Today's climate variations are no more severe than they have ever been, and anthropogenic activity has little to do with climate.
The reason "institutional investors," who primarily manage pension funds that are controlled by public employee unions, are calling for these disclosures, is to tighten their control over the private sector. It provides them another weapon with which to marginalize companies who don't comply with their wishes. It is another example of the collusion between big labor and big finance in America. It is utterly sinister.
Uhh, actually climate change
Submitted by DaveD (not verified) on Tue Nov. 24, 2009 5:14 AM PST.
Uhh, actually climate change is something that has occurred for longer than human history. And it is something that has been the cause of, or certainly been a contributing factor in, the extinction of numerous species. The fact that today's climate change may not be as severe as some in the past is really insignificant. Climate change doesn't need to be the worst ever to have occurred to be catastrophic; it need only be severe enough to upset the delicate ecological balance of our planet.
"anthropogenic activity has little to do with climate" aside from parroting a well-worn conservative mantra, what is your proof, or even evidence, that there is the slightest shred of truth to this statement. I personally have no doubt that "anthropogenic activity" is the reason that it is no longer save to eat the fish caught in most of our rivers; that "anthropogenic activity" is the cause of the troubles in our oceans; that "anthropogenic activity" is the reason that asthma and ADD is so much more prevalent than it was when I was young; that "anthropogenic activity" is the leading cause of cancer; etc.
It is long past time that we put a stop to allowing corporations to foul the air we breathe, the water we drink, and the soil in which we grow the food we eat in the name of "profits". We the people have paid a heavy price so that a few can become fabulously wealthy, whether or not we use their products. I really don't care if prices will rise to reflect the true cost of producing those products; let those you buy them pay the price instead of forcing me to subsidize them with my health.
Ugh... Conservo-bots, quite
Submitted by not a computer (or, similarly, a conservative) (not verified) on Tue Nov. 24, 2009 2:29 AM PST.
Ugh... Conservo-bots, quite possibly computer algorithms, are trolling motherjones and incessantly posting vaguely relevant free market propaganda. It's disappointing to see so plainly the roots of fascism in one's day-to-day routine. Humanity could do so much more.
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