Mark Carney is the governor of Bank of England and said that all businesses around the globe need to make more disclosures about “climate change footprint” in order to prevent financial crisis. Carney spoke out about the vulnerability of investors and insurers to climate change, and stressed the urgency to address the issue. The number of weather-related losses has tripled since 1980s. He spoke to Lloyd’s of London’s insurance market Tuesday, saying that “Risks for financial stability can be minimized if transition starts early and follows an predictable path.” “The current challenges posed by climate changes pale in importance compared to what may come,” Carney stated. The “farsighted” among you see larger global effects on property, migration, political stability and food and water security. Why isn’t there more done about it?” Carney is the Chairman of G 20’s Financial Stability Board. He stated that in November, the FSB discussed with G 20 the need to push companies to provide consistent and reliable information on their “carbon intensity” assets. Carney stated that the right information is able to support both evangelists and sceptics their convictions using their capital. It will show how valuations of fossil fuel-using companies might shift over time. He concluded that climate change was the catastrophe of the future. It doesn’t take an army of statisticians to show us the devastating effects of climate change. Future generations will pay a price that is beyond their horizons. The horizon of monetary policy is two- to three years. It is slightly longer for financial stability, although it typically extends to the outside boundaries of credit cycles – approximately a decade. It could be too late if climate change is a major concern for financial stability.
