Wednesday, October 18, 2006

More investors want climate-change risk disclosure

A group of large institutional investors and other organizations representing trillions of dollars in assets have offered guidelines to companies for providing their investors information on the financial risks of global warming. They're calling it a "Global Framework for Climate Risk Disclosure."

The investors involved included large pension funds in the Australia, the United Kingdom and two U.S. states: California, and Connecticut.

This is among the recent moves demonstrating a sharper focus by a growing number of investors on how corporate bottom lines are affected by how they, and their governments, deal with or ignore global warming.

The four key elements of any risk mitigation plan, according to the 14 funds and other organizations:
1. measurement of greenhouse gas emissions
2. analysis of climate risks and emissions menagement
3. assessment of physical risks of climate change
4. analysis regulatory risk, including different regimes and the confusion they sew

Among the funds/organizations are:
- California Public Employees' Retirement System (aka CalPERS);
- Connecticut State Treasurer's Office
- Institutional Investors Group on Climate Change
- United Nations Foundation, led by former U.S. Congressman Tim Wirth of Colorado
- Ceres

CERES, climate risk, global warming, climate change, climate risk disclosure, Tim Wirth, pension funds


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