https://www.wsj.com/articles/the-u-k-s-experiment-with-climate-reporting-is-worth-watching-11605610427?st=8y4p3tiqv5w9fdj&reflink=article_email_share
The U.K. is making its big corporate and financial sectors think more rigorously about climate change. There could be write-downs, but also reassurance for investors that problems aren’t building up out of sight.
From next year, many U.K. companies and funds will have to report how their assets and organizations will affect and be affected by global warming. The new rules, announced by the country’s Treasury chief, Rishi Sunak, as part of a post-Brexit financial strategy last week, are in line with 2017 recommendations from the Task Force on Climate-related Financial Disclosures.
Christopher K. Merker, PhD, CFA, is a director with Private Asset Management at Robert W. Baird & Co. and executive-in-residence and co-director of the Marquette S-Lab. He is also founder and chair of the board of Water + Energy Forward, a green bank focused on market-based climate solutions. He holds a PhD in investment governance and fiduciary effectiveness from Marquette University, where he has taught “Sustainable Finance” since 2009. He publishes
Sustainable Finance and is co-author of
The Trustee Governance Guide: The Five Imperatives of 21st Century Investing.
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