<
https://theconversation.com/nz-biggest-firms-will-soon-have-to-disclose-their-climate-risk-but-will-it-really-curb-climate-change-191490>
"Climate change has many catastrophic consequences, including droughts, floods,
wildfires, heat waves, rising sea levels and biodiversity loss. These all have
adverse implications for social cohesion, economic development and financial
stability.
Regrettably, the goals of advancing a better environment and a flourishing
economy don’t always line up. Driving greater awareness of climate-related
risks among large firms and powerful financial institutions is therefore of
paramount importance and urgency.
Responding to this challenge, economists, environmentalists, activists and
politicians have sought ways to ensure financial decisions factor in climate
change. To that end, policymakers are now considering the introduction of
mandatory climate-related disclosures for firms and financial institutions.
In essence, the idea is to employ disclosures to force large financial actors
to consider their impact on climate change, and the impact of climate change on
them.
For example, consider the potential exposure of a bank to climate risks. Home
loans may not be recoverable if houses become uninhabitable because of rising
seas. Other homes may become uninsurable because of increasing flood risks.
Likewise, agricultural loans may become riskier because of the increasing
intensity of droughts. All of these risks are important not only to the bank’s
profitability but also to the homeowners, farmers and manufacturers who
borrowed money from that bank."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
