Firms May Have To Disclose Climate-Related Risks In Financial Disclosures

Environment: NPR


The Companies like to talk about going green and fighting climate change but they're not necessarily keen to admit if They have a factory in an area prone to flooding or if their supplier was just hit by a hurricane. Npr's h j my explains that if regulators get their way that will change when software. Company hewlett packard. Enterprise was looking around houston for its new headquarters. It took all the usual things into consideration the location. The cost and also this flood plains historical weather events how to the freeways functions. They go underwater. Do they not executive john. Fry says accounting for the impacts of climate is something to company has been doing for years like when deciding where to locate headquarters. Hp learned this the hard way fry. Says he was in houston. The city got hit by hurricane harvey and twenty seven flooding the company's it data centers when you have actual live event. You discover things that you didn't consider now. Regulators like the securities and exchange commission the federal reserve and other planning to force companies to incorporate those type of climate risks. That's because natural disasters are expected to increase in frequency and intensity his fed. Chairman jerome powell. The reason we're focused on climate change is that our job is to make sure that financial institutions banks particularly the largest ones understand enter able to manage the significant risks last month. The sec issued a list of fifteen broad questions asking investors and the public. What information companies should be required to disclose the deadline for responses is june. It's a slow and methodical approach. That's because figuring out how climate change impacts businesses is not always easy. Says paula the purna on adviser nonprofit. Cdp if a factory burns down you see the fire. But if dealing with climate change is is a very insidious invisible risk

Coming up next