This storm looks expensive Rapideye/E+ via Getty Images
Climate-change stress… is getting financial. Risks related to climate change could affect global markets in a big way, and US officials are taking note. Last week, the Fed moved closer to launching climate-risk safety checkups. And the SEC is trying to amp up rules for corporate climate reporting. The disclosures could change company valuations, and how investors view entire industries. The details:
Late to the climate rally… The US is playing catch-up with countries like England and France, which have already set corporate climate-reporting standards. Meanwhile, companies have been making their own rules:
Green filter... About 90% of S&P 500 companies share voluntary climate reports. But they’re usually not regulated, and sometimes “greenwashed” to inflate progress:
Goodbye, greenwashing… Because climate accounting is about to be clearer. Standardized climate reporting through the Fed and SEC will likely make it harder for companies to fudge their environmental impact. US officials say better reporting will drive more capital to greener industries, and help countries reach net-zero emissions. Big money is at stake too: Extreme weather has cost the US $1.9T since 1980, and $95B last year alone.
Correction: In the original version of this story published Monday, Oct. 11, we misstated that Netflix had not yet set targets to reduce its carbon footprint. The company has set targets, which you can read about here and here.