Environmental issues are not the only issues that concern the climate

money plant

Available: Pixabay / CC0 Public Domain

On March 21, the Securities and Exchange Commission (SEC) proposed rules requiring public trading companies to disclose their risk to the weather. According to the SEC Press Release:

“The Securities and Exchange Commission has issued legislative changes requiring registrars to include certain weather -related information in their registration records and time records, with the knowledge that about climate problems that affect their business, the consequences .. of activities, or the financial situation, and other financial reporting measures about the climate in a note on their recorded financial statements. metric to evaluate whether a subscriber is aware of those issues. “

I am pleased to see this recognition of the serious impact of one of the many financial problems created by environmental conditions. Looking at Wall Street, we see that money is important. There are opinions in the U.S. Congress and editorials in the Wall Street Journal who believe that these issues have been overstated and only express a dissenting opinion. Of course, there are other aspects of the financial crisis. However, investors should be provided with the knowledge to evaluate and understand the problem posed by an external position in an organization. Some of these problems are related to market conditions, and others are related to social, cultural, political, and environmental conditions. Companies abandoning their Russian operations prior to the invasion and Russia’s ignorance in Ukraine are expressing losses and hopes of recovering their future financial reporting. . Politics creates the financial crisis, and our ecosystem will also contribute to the financial crisis.

My only objection to the SEC’s proposal is that it limits the climate crisis and does not involve the magnitude of the environmental crisis. The importance of a broad -based approach to environmental sustainability was highlighted in a Wall Street Journal interview led by historian Ed Ballard of Alison Bewick, head of crisis management at Nestle. Ballard’s place:

“A Nestlé SA official who helped establish a new platform for reporting on biodiversity said companies would need to release integrated information on climate change and as, because the two are closely related.Alison Bewick, head of crisis management at Nestlé, was one of the executives involved in creating the first project from the Taskforce on Nature- related Financial Disclosures published last week.The companies are about to report any problems and opportunities related to the situation.

According to Ms. Bewick understands that the whole problem is an environmental problem. Climate change is seen by some as the biggest problem as well as an “independent” threat, but it would be foolish to maintain competition between environmental issues. Every now and then, certain challenges can threaten us. These days we are starting to think about the problem of radioactive contamination from war -damaged nuclear plants. We are living with the crisis caused by an invasive disease called COVID-19. There is no shortage of environmental disasters due to the unintended consequences of new technology. Nestle’s Bewick calls for combining biodiversity measurement and advertising with climate change. In an interview with the Wall Street Journal, he found:

“We’re thinking about how we can communicate our carbon footprint, mostly through natural systems. -To use in the form of a conversion of plants, that kind of thing. “I think the main reason is the one that is added to the result, because there is a very strong and trusting relationship between nature and climate.”

The opposition to engineering that we see in the political world and fossil fuels reminds me of the opposition to the link of medical science between smoking and cancer. The relationship is clear and has been established for many years, but the economy continues to have healthy feelings. In 2019, 1.1 billion people smoked, and 7.7 million people died from tobacco. Too much for science… Climate change is similar, and if anything, its economic benefits are stronger than the tobacco industry. Thatʻs probably the main reason for the climate change. Climate change requires critical technological changes to drive our economic system.

Science is right ahead and some of the effects of climate change are well known. But sometimes, the simple physics of climate change are associated with the most complex biological systems and ecosystems. Such changes and ecological damage caused by unrelated human factors are less clear and more difficult to measure. The network of relationships in the living world of ecology is much simpler and more complex than the major impact of green gases on our climate. However, millions of simple changes in our biosphere could add a simple effect as much as the amount of climate change.

Ms. Bewick’s call for combining measurements of climate and biological factors into one method is appropriate because the two groups of effects are related. It is also a way for the less “popularity” of biodiversity effects to make money and the “popularity” of climate effects. Most importantly, going beyond this improvisational level is social sustainability metrics. In the world of finance, financial terms are defined by the government, not by NGOs. At the inception of the New Deal period, the SEC was responsible for developing approved financial accounting practices. The SEC or any other part of the U.S. federal government must begin the process of developing Generally Accepted Environmental Sustainability Metrics. If this is to become the norm in business reporting, businesses will need clear explanations of what they need to report. This may begin with an overview of the expected climate but should extend to broader measurements of the impact and risk.

The goal of the SEC law is to provide more accurate metrics for reporting the weather. According to Richard Vanderford in the Wall Street Journal:

“Ka [SEC Climate Disclosure] the law is intended to address matters not disclosed by various public bodies. Instead of voluntary reports using hand -selected metrics, companies need to show more detail about how much carbon they emit and how they plan to address the issues. of the sky. Ideally, investors would be able to make a comparison of jobs. “

He noted, however, that the rule would open up agencies to prosecution for misdemeanors in reporting, adding that “… notice requirements issued by the industry… that the new government will require agencies to invest significant resources in making these demonstrations. “

No small question is how difficult it is to integrate continuous metrics into navigation, and we make a mistake in learning how to do it. Just as financial reporting keeps the financial accounting industry afloat, maintaining environmental sustainability metric requirements will pay businesses significant revenue and secure a growing business of sustainability. . But if we want to grow our economy without destroying our planet, we need to do a better job of measuring and monitoring our environmental impact. I am encouraged by the fact that these advertising and measuring problems have come to the forefront. To say “Druckerism,” “to preserve something, you have to measure it.” Without measurement, you can’t tell if things are going well or not. We would not have had the proper management of environmental sustainability without these measures. The SEC request is a big first step. It needs to be maintained but built and improved.

Demonstrating the changing climate that guides knowledge and engagement between businesses and investors

Presented by the Earth Institute at Columbia University

This story is republished courtesy of the Earth Institute, Columbia University http://blogs.ei.columbia.edu.

Directions: Opinion: Climate crisis is not the only issue on environmental issues (2022, April 4) Retrieved 4 April 2022 from https://phys.org/news/2022-04 -opinion-climate-environmental-companies-disclose.html

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