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New California law compels two huge pension funds to disclose climate-related financial risk

This is a guest post by Jeremy Leggett. Views are the author's own and do not necessarily represent the opinions or positions of MyGridGB or Dr Andrew Crossland.

The FT reports that Calpers ($360bn in assets), and Calstrs ($228bn ) must now report publicly on climate risk to their public market portfolio.

Beginning in 2020 the reports must cover “the effects of the changing climate, such as intense storms, rising sea levels, higher global temperatures, economic damages from carbon emissions, and other financial and transition risks due to public policies to address climate change, shifting consumer attitudes, changing economics of traditional carbon-intense industries”. They must be updated every 3 years.

Jack Ehnes, chief executive of Calstrs: “an important signal for the investment market …The conversations have shifted. There’s a framing of the issue [as one] that has a very strong business argument.”

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