Investment firms that manage TRILLIONS of dollars are well aware of how climate change challenges the financial risk of their investments. Even if our federal government says they are pro business, their actions to address climate change in any way and alleviate the enormous economic cost to business as the climate warms up, is contrary to this reality. They are totally owned by the fossil fuel industry and doing their bidding for short term benefits. UGH!
Meanwhile, big investment firms are increasingly aware and concerned about the economic risks that the warming climate presents to business as usual. And they are forcing big companies to pay attention as well.
Have you considered how the climate is going to affect your economic future?
“The company joined a growing list of organizations demanding that the private sector pinpoint how climate change threatens operations. The multitrillion-dollar investment group BlackRock Inc., the mutual fund giant Vanguard Group Inc. and the London financial firm Schroders PLC have all raised concerns about the economic risks posed by climate change (Climatewire, July 18).”
“In a recent research note, a division of State Street Corp. urged companies in sectors exposed to climate change and carbon regulations — like oil and gas firms, utilities, and mining companies — to plan for the serious challenge of global warming…
State Street, which manages about $2.6 trillion in client money, called on companies to share information about their assessments of financial hazards related to climate change and carbon taxes, as well as their goals to slash emissions.”
Investment Firm Calls Climate Change A “Significant Risk”
One of the world’s biggest investment firms is pressing companies to think seriously about the risks of climate change and explain how they manage those threats.
Boards of directors “should regard climate change as they would any other significant risk to the business” and ensure that long-term plans are “resilient to the impacts of climate change,” the note says.
State Street, which manages about $2.6 trillion in client money, called on companies to share information about their assessments of financial hazards related to climate change and carbon taxes, as well as their goals to slash emissions.
The company joined a growing list of organizations demanding that the private sector pinpoint how climate change threatens operations. The multitrillion-dollar investment group BlackRock Inc., the mutual fund giant Vanguard Group Inc. and the London financial firm Schroders PLC have all raised concerns about the economic risks posed by climate change (Climatewire, July 18).
“At a minimum, we expect companies, particularly in high-impact sectors, to address how the board or its committees oversee climate risks,” State Street said in its note. “We believe that it is important for these companies to give investors information that is relevant in helping them gain comfort that climate risk is being managed by the board.”
Officials at State Street said they have contacted 168 companies 240 times in the past four years to discuss climate change and other issues. The note said European companies are studying how climate change affects them in more detail than U.S. firms.
