The Climate Crisis Isn't Just About Weather

Floor Speech

BREAK IN TRANSCRIPT

Mr. CASTEN. Madam Speaker, wildfires, flooding, and superstorms are the most tangible signs of a warming planet, but the climate crisis is not just about weather. It is about wealth.

A recent study by Swiss Re found that if we remain on our current trajectory, global GDP will fall by 18 percent by 2050. Investors understand this. They care about climate change because it is in their economic self-interest.

As BlackRock CEO Larry Fink said, ``Climate risk is investment risk.'' Main Street investors have put $37 trillion, roughly one-third of all assets under management, into climate-focused ESG investments.

Unfortunately, our regulation has not kept up with that demand. There is no consistent definition of how to quantify a firm's contribution to, or protection from, a warming globe. Left to choose from a menu of methodologies, companies often just pick what is most favorable to them.

We don't allow companies to pick their own financial accounting standards. Investors are asking us to provide the same consistency for their climate accounting. That is why I introduced the Climate Risk Disclosure Act, which directs the SEC to create consistent mandatory climate reporting standards for all public companies.

This will allow companies to compete for capital on a level playing field, providing investors with the certainty they need to hedge their financial risk. Yesterday my bill passed committee and will now come to the floor.

The right time to safeguard our financial system against climate change was decades ago, but our last chance is now.

BREAK IN TRANSCRIPT

Source