Friday, April 24, 2015
Rockefeller Brothers Fund Among Those Pushing for Stronger Climate Risk Disclosure
In a seven-page letter to the SEC, organized by the nonprofit sustainability advocacy group Ceres, investors noted that the current low price environment is providing a stress test for the fossil fuel sector of the risks it is likely to face due to climate change, citing a number of “carbon asset risks” — including expanding carbon-reducing regulations, growth of renewable energy and weakening oil demand — that are not sufficiently disclosed in their financial filings.
Given these climate-related trends, Ceres says investors are especially concerned about the industry’s excessive capital spending on high-cost, carbon intensive projects such as Arctic drilling, ultra deepwater drilling and Canadian oil sands projects....