11 May How to Fight Global Warming (Without a Treaty or a Statute)
A coalition of institutional investors and other non-govermental organizations are calling on U.S. corporations to disclose (or be required to disclose) economic risks from climate change and global warming. The highlights:
- A New Climate Risk Disclosure Initiative will be aimed at enhancing corporations’ climate risk disclosure. The effort will focus on disclosure of corporate emissions, climate actions, scenario analysis, strategic analysis, and plans to address climate risks and opportunities.
- UNEP and the UN Global Compact, working with leaders in the institutional investment community, are developing Principles for Responsible Investment.
- A New Forum for International Investor Cooperation in Addressing Climate Risk will promote collaboration and information sharing among investors internationally about actions to address the financial risks and investment opportunities posed by climate change.
This f0llows the announcement last week ( noted by Peggy) that private banks of environmental standards governing their lending. Although I’m not necessarily in love with this attempt to pressure corporations, I think this sort of market-based, non-government attempt to address a potential environmental problem has go to be superior to the command-and-control approach espoused by treaty regimes like Kyoto.