Last month the SEC clarified its guidance around disclosure of risks due to climate change and carbon footprint. Today we see that guidance has had a material effect–95 different climate change petitions from investor groups representing $8 trillion in assets under management.
This is where the big difference will come fighting climate change: requiring the market to reward companies that have made wise, long-term decisions that serve their own best interest as well as the globe’s and to punish companies that don’t. I’m looking forward to the day when we all realize, much as we did with battles over toxic waste releases in the 1970s, that being prudent about carbon footprint isn’t just tree-hugging, feelgood stuff, it’s also good business.