As the physical effects of climate change increase, so do the financial risks that impact companies, investors and the communities in which they operate. Last year was marked by record-setting economic losses -- equaling USD$148 billion due to extreme weather events such as hurricanes, tornadoes, droughts and fires. And these events are expected to occur with more frequency as global greenhouse gas levels increase, meaning bigger economic losses in the future.
Companies and investors face significant risks from these changing weather patterns. Recent guidelines set forth by the SEC require companies to disclose risks brought on by the effects of climate change. As a result, a growing group of institutional investors and public interest groups are asking companies to disclose these risks and the steps they are taking to minimize risk from climate-related disasters.
Ceres, along with Oxfam America and Calvert Investments, released a new guide "Physical Risks from Climate Change: A guide for companies and investors on disclosure and management of climate impacts" to help improve corporate disclosure and management of financial impacts of climate change and help investors make more informed investment decisions. This week, we speak with Bennett Freeman, Senior Vice President of Sustainability Research and Policy at Calvert Investments about the new guide and what it means for companies and investors alike.
Download the report at www.ceres.org/reports.
[Music: "Finally Moving" by Pretty Lights on Taking Up Your Precious Time (Pretty Lights Music, 2010) and "Not Fit State" by Hot Chip from The Warning (Caroline Astralwerks-CAT, 2006)]