“Businesses do what’s in the interest of business,” said an adviser to CDP who worked on the report. (see article below) “If this many companies are pricing carbon internally, they know that climate change is a business risk.”
“Businesses do what’s in the interest of business,” said an adviser to CDP who worked on the report. (see article below) “If this many companies are pricing carbon internally, they know that climate change is a business risk.”
A ringing warning about this business risk came from Mark Carney, the governor of the Bank of England, who delivered a speech at the insurer Lloyd’s of London, pointing out that climate change may have catastrophic consequences for the insurance industry.
“Inflation-adjusted insurance losses from [weather-related loss] events have increased from an annual average of around $10bn in the 1980s to around $50bn over the past decade.” “The [current cost of] climate change [will] pale in significance compared with what might come.” At present there is little incentive to address this problem because “it is beyond the business cycle, the political cycle and even the horizon of technocratic authorities, like central banks, who are bound by their mandates. (The horizon for monetary policy extends out to 2-3 years. For financial stability it is a bit longer – about a decade.)
In other words, once climate change becomes a defining issue for financial stability, it may already be too late.”
If this sense of urgency gains traction in financial circles, there is some hope that action may be taken before that time.
Just follow the money.
