August 25, 2017 Read More →

State Street Corp., With $2.6 Trillion in Assets, Calls for Companies to Disclose Climate-Change Risk

E&E:

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.

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.

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.

More: ($) Investment firm calls climate change a ‘significant risk’

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