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 obligation to disc...
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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. (more…)
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This is the time of year when corporate directors sweat. They are anxiously finalizing the annual report and proxy materials that will present the company’s financial results and risks for all to see.
This year directors have an added challenge: meeting investor expectations to disclose material climate-related risks.
The pressure from investors is real. Blackrock, one of the world’s largest asset managers, sent letters to 120 companies urging them to disclose material financial risks related to climate change and is making climate-risk disclosur...
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Government task forces suffer from a bad reputation. Stuffed with members who have big titles but little appetite for hard work, such groups often are formed to bury an issue, not promote it.
But the Task Force on Climate-Related Financial Disclosures (TCFD) is an exception. Its report, issued in late June, is substantive and serious. It will have a significant impact in boardroom...
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In a week full of high-profile brawling, the fight between Elon Musk of Tesla Motors and the New York Times has captured a lot of attention.
It’s got it all – visionary CEO, upstart company, allegations of media bias, a trove of highly detailed data and a passionate audience. As the saga continues to rage, Musk looks like he might have overstated his case against the Times, but it’s still early to draw conclusions. Even if Musk is not the wounded hero he presents himself to be, th...
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Although largely overlooked by the media, California recently launched its ambitious carbon-trading program, holding a successful auction of carbon permits that raised nearly $300 million. Of course, had the auction failed it likely would have made the front pages, but its little-noticed triumph shouldn’t obscure its significance as a major step forward for the carbon market. It is a success story with lessons for both policy-making and risk communication. (more…)
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Three recent deals involving investment banks suggest a reshaping of the industry is underway, but beyond the perfunctory coverage of their press releases the deals haven’t drawn much attention. But each says something significant about where the industry has been – and where it might be headed. (more…)
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It’s easy to dismiss the carbon market as a passing fad or an artifact of a more optimistic, pre-recession world. Yet carbon trading continues to grow, following a trail blazed by another asset class that once seemed obscure and risky but is now a cornerstone of the investing world: emerging market bonds. (more…)
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I participated in a conference this week on the outlook for the carbon market. Yes, there really is a carbon market, and it has made big strides this year, though you wouldn’t have known it from the press.
Most of the media – and our elected officials – ignore the issue. They’re blinded by outdated views and misconceptions – what we call the Six Myths of the Carbon Market. (more…)
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