Carney’s CEO Club Gives $3.3 Trillion Muscle to Climate Fight

Bank of England Governor Mark Carney said he’s concerned investors aren’t doing enough to assess threats that global warming will have on assets they purchase

Bank of England Governor Mark Carney
is concerned investors aren't doing enough
to assess global warming threats.

The central bank governor who also leads the Financial Stability Board advising the Group of 20 nations also won the backing of more than 100 chief executive officers for his campaign to increase financial reporting standards on issues related to the environment. That transparency, he said, would help investors understand how rising temperatures will affect company performance.

“The risk is that people aren’t thinking about this sufficiently, and that there’s a bigger adjustment that comes — you get a climate Minsky moment where there’s much tougher regimes put in place,” Carney said in an interview on Bloomberg Television on Thursday, noting there’s already upheaval in the strategy of German utilities and stemming from the Volkswagen AG emissions scandal.

The remarks amplify a theme Carney has stressed for years, that the impact of rising temperatures and more unpredictable weather represents a long-term risk for investors more used to assessing investments a few months or at most a few years in advance.

Read the Bloomberg Energy Finance story - “Carney’s CEO Club Gives $3.3 Trillion Muscle to Climate Fight.”