Bloomberg Businessweek: Climate Change Could Make Borrowing More Expensive

The value of bond holdings for locales or companies struck by disaster can plunge: “bond rating agencies such as Moody’s Investors Service and S&P Global Ratings are looking at whether they should be including more disaster forecasting in calculating the grades they give to government debt and to companies in industries ranging from insurance to construction,” writes Emily Chasen for Bloomberg Businessweek. “In November, Moody’s warned coastal cities and states to address their climate risks or face possible downgrades.” The US National Oceanic and Atmospheric Administration tallied 16 major, $1 billion-plus storms, fires, and floods for 2017. Investors are seeking more specifics on such matters for bond issues. More than 130 institutional investors are participating in Principles for Responsible Investment, a project started and supported by the United Nations to consider environmental, social and governance factors in the investment process and to develop accountability and standards. – YaleGlobal