Green Investor’s Guide

[Helen Williams, Financial News Contributor]

[Primary news source: Institutional Investor]

CERES is a forward-thinking grouping of investors, public interest groups and environmental groups. This week it published a report called “Disclosing Climate Risks and Opportunities in SEC Filings: A Guide For Corporate Executives, Attorneys and Directors” .

The report seeks to assist companies in understanding how disclosure of climate change risk material in their SEC filings can aid investment opportunities and also enable them, as investors, to be better at working out investment risks and opportunities.

Institutional Investor reports that according to  Bruce M. Kahn, Senior Investment Analyst at Deutsche Asset Management which manages over $700 billion: “The Ceres report helps clarify what is going on and gives a nice framework to help to identify, disclose and understand what the real risks are….the key to disclosure is specificity and accountability”. The journal also notes  Mindy Lubber, president of Ceres saying in the report: Companies should bear in mind that climate risk is but one of many environmental, social and governance (“ESG”) risks that have financial impacts”.

The SEC guidelines require US companies to disclose all material risks. These and other authoritative reports are stressing that climate change is a ‘material disclosure’ as it can have a serious affect in an investment risk scenario.

[Finance & Economy Contributor – USA]

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