In one of its most anticipated rules, the SEC last month adopted a requirement for companies to disclose climate-related risks, completing a process that began two years ago with the release of the agency’s proposed climate disclosure rule. While the final rule is more narrow than initially proposed, it requires publicly traded companies to disclose […]
The annual climate conference (COP28) concluded this week, and it succeeded in doing what few thought possible: saying the world needs to end the use of fossil fuels. That achievement is all the more remarkable when you consider the persistent cloud of doom that shrouded the event. Whether it was worries the hosts were mainly […]
The headlines marking the end of the COP26 global climate summit were mostly gloomy, much like the weather in Glasgow. Reports focused on unenforceable pledges by countries to cut carbon levels and tepid increases in funding for poor countries most affected by climate change. But there were significant accomplishments last week in Glasgow and beyond. […]
Is a new day dawning at Exxon? Exxon shareholders elected two directors backed by an activist shareholder who called for changes in the oil giant’s response to climate change. It’s the first proxy campaign at a major US company where directors were the target and climate change was the issue. Anne Simpson of the California […]
Sometimes the most important news gets the least attention. Yesterday, to little fanfare, IHSMarkit, a financial data company, announced it would introduce a global registry for carbon credits using distributed ledger technology. It would link various registries around the world and provide a single data set for all projects and credits. Why is this so […]
Making progress on corporate climate risk disclosure is slow work. Partly it’s because the topic is complex, but it’s also because institutions are slow to change, even those that set themselves at the forefront. Last week brought two examples. First, investment giant BlackRock released its sustainability report, in which it said it identified 244 companies […]
These days it seems a U.S. official can mention climate change only when they’re outside the country. A case in point is William Hinman, who heads the SEC’s Division of Corporation Finance and addressed climate risk at a conference in London. Mr. Hinman spoke about the disclosure of complex risks, and he mentioned climate risk […]
Warren Buffett made headlines – and a handsome profit for charity – by betting that a stock index could outperform hedge funds. Could he make a similar bet on climate change?
It’s been a year since the Task Force on Climate-related Financial Disclosures (TCFD) released its recommendations. Backed by the G20 finance ministers and chaired by Michael Bloomberg, the TCFD offered concrete guidance for public companies on how to report risks and opportunities arising from climate change. The TCFD left no doubt that boards have an […]
Warren Buffett’s annual shareholder letter was full of folksy charm and investment wisdom. But it had little to say about how he and the Berkshire Hathaway board are handling climate risks for the sprawling conglomerate.