Carney’s CEO Club Gives $3.3 Trillion Muscle to Climate Fight – By Jess Shankleman and Francine Lacqua June 29, 2017, 3:32 AM PDT


  • Mark Carney | Photographer: Chris Ratcliffe/Bloomberg

     

Bank of England Governor Mark Carney said he’s concerned investors aren’t doing enough to assess threats that global warming will have on assets they purchase.

The central bank governor who also leads the Financial Stability Board advising the Group of 20 nations also won the backing of more than 100 chief executive officers for his campaign to increase financial reporting standards on issues related to the environment. That transparency, he said, would help investors understand how rising temperatures will affect company performance.

QuickTake: Climate Change

“The risk is that people aren’t thinking about this sufficiently, and that there’s a bigger adjustment where there’s much tougher regimes put in place,” Carney said in an interview on Bloomberg Television on Thursday, noting there’s already upheaval in the strategy of German utilities and stemming from the Volkswagen AG emissions scandal.

The remarks amplify a theme Carney has stressed for years, that the impact of rising temperatures and more unpredictable weather represents a long-term risk for investors more used to assessing investments a few months or at most a few years in advance.

The Group of 20 leading economies asked Carney in 2015, shortly before negotiations for the Paris Agreement on climate change, to compile a study weighing the financial risks implied by global warming. Companies with a combined market value of more than $3.3 trillion — equivalent to all the goods and services produced annually by Germany — threw their weight behind Carney’s final report on climate change as it was published on Thursday.

More companies are likely to join the effort “as people become engaged,” Carney said, adding that their support will improve steps toward transparency the FSB is suggesting.

Article continues:

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s