Posts

Huge recent economic losses from climate impacts and a bipartisan 50-step plan for regulators

by Rachel Koning Beals, Market Watch


Highlights

A new report from Ceres examines the wide-ranging and compounding impacts of the climate crisis on U.S. financial markets.

  • Due to climate change, the United States has spent $1.7 trillion on over 265 extreme weather events since 1980 and has seen economic losses of more than $500 billion from 2015-2019
  • When planning the economic recovery from the COVID-19 pandemic the US must include climate-change responses from financial markets and their regulators
  • Climate change will take a 5%-20% loss of GDP if left unmitigated
  • U.S. financial regulators are far behind  China, Europe, the U.K., South America, and Canada in responding to climate change as a systemic risk and taking steps to protect their markets
  • Advocates behind the report are emphasizing a market-driven regulatory restructure to get the US on par with other countries

Using new progressive financing mechanisms we can produce an additional $20+ billion per year specifically for climate action.


Read More: https://www.marketwatch.com/story/warning-of-green-swan-risks-climate-group-ceres-and-bipartisan-supporters-lay-out-50-step-plan-for-markets-and-regulators-2020-06-01

The biggest sustainability funds are beating the market

by Mathieu Benhamou, Emily Chasan and Saijel Kishan, Bloomberg


Highlights:

Environmental, Social and Governance (ESG) Funds are gaining popularity as sustainability-focused investing becomes the new trend.

  • Big funders are focused on investing in companies that tackle energy efficiency and minimize environmental impact
  • Tech, healthcare, and financial services companies are some of the top ESG funds, as their emissions have been historically low
  • Bloomberg’s ranking scale focuses on funds with at least $100 million in assets that use ESG in their investment process.
  • Morgan Stanley Institutional Fund tops the Bloomberg list with 98.1 points

The Climate Center supports divestment campaigns that help speed up and scale up greenhouse gas reductions globally and nationally.


Read More: https://www.bloomberg.com/graphics/2020-ten-funds-with-a-conscience

‘Green Swan’ climate event could trigger global financial crisis, BIS warns

by Jana Randow, Bloomberg Green, January 20, 2020


Highlights:

  • Climate change threatens to provoke “green swan” events that could trigger a systemic financial crisis unless authorities act against such risks, according to the Bank for International Settlements
  • Many central banks already contribute to the effort by monitoring climate-related risks through stress tests, incorporating environmental, social and governance criteria in pension funds, or working with banks on disclosing carbon-intensive exposure to assess potential financial-stability risks
  • The analysis by officials at the Basel-based institution–often described as the central bank for central banks– adapts the “black swan” concept devised by Nassim Nicholas Taleb to describe adverse events outside the scope of regular expectations with wide-ranging or extreme impacts

The bank’s warning drives home the need for rapid decarbonization to avoid destabilizing the planet’s climate, as well as our global economic system.


Read more: https://www.bloomberg.com/news/articles/2020-01-20/-green-swan-event-could-trigger-global-crisis-bis-warns?cmpid=BBD012220_GREENDAILY&utm_medium=email&utm_source=newsletter&utm_term=200122&utm_campaign=greendaily