World’s big guns back Mark Car­ney on cli­mate change

The Star Early Edition - - BUSINESS REPORT | INTERNATIONAL - Jes­sica Shankle­man

BANK OF Eng­land Gov­er­nor Mark Car­ney won the back­ing of more than 100 chief ex­ec­u­tives pledg­ing to in­crease fi­nan­cial re­port­ing stan­dards to fend off risk from cli­mate change.

Com­pa­nies with a com­bined mar­ket value of more than $3.3 tril­lion (R55.08trln) – equiv­a­lent to all the goods and ser­vices pro­duced an­nu­ally by Ger­many – threw their weight be­hind Car­ney’s fi­nal re­port on cli­mate change pub­lished yes­ter­day. As chair­per­son of the Fi­nan­cial Sta­bil­ity Board, which ad­vises the Group of 20 (G20)na­tions on eco­nomic pol­icy, he has warned cli­mate change is a “tragedy on the hori­zon,” with im­pacts be­yond the typ­i­cal short-term time scales used by bankers, fund man­agers and in­sur­ers.

“Wide­spread adop­tion will pro­vide in­vestors, banks and in­sur­ers with that in­for­ma­tion, help­ing to min­imise the risk that mar­ket ad­just­ments to cli­mate change will be in­com­plete, late and po­ten­tially desta­bil­is­ing,” ac­cord­ing to a state­ment from Car­ney.

The G20 lead­ing economies asked Car­ney in 2015, shortly be­fore ne­go­ti­a­tions for the Paris Agree­ment on cli­mate change, to com­pile a study weigh­ing the fi­nan­cial risks im­plied by global warm­ing. The sup­port of chief ex­ec­u­tives from com­pa­nies in­clud­ing Royal Dutch Shell, Pep­siCo, Bank of Amer­ica and Dow Chem­i­cal may help the Fi­nan­cial Sta­bil­ity Board dull the im­pact of this month’s de­ci­sion by US Pres­i­dent Don­ald Trump to with­draw from the land­mark deal.

“Com­pa­nies should be clear about how they plan to be re­silient in the face of cli­mate change and en­ergy tran­si­tion,” Shell chief ecx­ec­u­tive Ben van Beur­den said. “It is right that it should be trans­par­ent which com­pa­nies are truly on firm foun­da­tions over the longterm.”

What’s un­cer­tain is how Trump’s de­ci­sion to stim­u­late fos­sil fu­els and pull out of the Paris deal will af­fect the way the G20 treats Car­ney’s work at its an­nual sum­mit next week in Ger­many. – Bloomberg


Mark Car­ney, gov­er­nor of the Bank of Eng­land, ges­tures while speak­ing dur­ing a tele­vi­sion in­ter­view yes­ter­day.

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