Michael Bloomberg, US billionaire, told AFP that global investors are increasingly considering climate change risks. Bloomberg is leading a task force that will focus on gaining a better understanding of the financial implications of climate change. Climate experts have warned that the world’s economy will face significant consequences if measures are not taken to curb carbon gas emissions that alter the climate. Flooding, rising sea levels, intense droughts and storms may wreak havoc on economies across the globe.
Commenting on the sidelines of the climate change talks in Paris, Bloomberg noted that investors were very aware of the financial implications of a warming planet, and are already taking action.
Bloomberg pointed to the issuance of green bonds, which are created to help finance projects that have a positive impact on the climate or the environment. Pension funds are now becoming more active in deciding which industries to invest in, and many are choosing only to invest in companies that are environmentally responsible.
The former mayor of New York and business magnate was named chairman of a new task force that will create international guidelines that companies will follow when disclosing to investors their exposure to the risks of climate change.
Called the Financial Stability Board, the Switzerland-based task force will be launched on the sidelines of the conference in Paris.
The more information investors have the better the decisions they make, Bloomberg said. He added that many investors have yet to take climate risks into account. While we will have to wait and see what customers and the market want to do, providing information on a comparable basis that’s reasonably accurate will allow people to make more informed decisions.
Speaking on the task force, Bloomberg stated that it’s crucial for investors and industries to understand the risks of climate change, but currently, there isn’t enough transparency about these risks. Although businesses and the finance community are taking the lead by investing in clean energy and technological innovation, the new task force will streamline this activity by improving transparency. As a result, economies will become more stable, and markets will be even more efficient.
The task force is expected to complete its work within one year.
Bloomberg firmly believes that businesses will react to the threat of global warming without waiting for government rules or guidance. He noted that the marketplace should lead the way in making changes, stating that individuals and companies can be innovative.