Jupiter April Climate News Wrap-Up
The top climate risk news highlights for April
In this April climate news wrap, it’s clear that regulators are continuing to weigh in on how the risks of climate change can, and will, impact businesses, banks and potentially our global economy. And it appears that things are really heating up in Europe (and we don’t mean the temperature). Let’s take a look at the top climate-related headlines for April. Learn more or request a demo.
#1. The SEC Might Be Delayed With Its Final Climate Disclosure Rule, but Many Companies Proactively Disclosing Due to Investor Pressures
The Wall Street Journal while the SEC has postponed its final Rule on climate risk reporting and disclosures, many companies are already taking steps to prepare and disclose now. SEC Chairman, Mr. Gensler said “hundreds of companies today are already making climate-risk disclosures” because many investors want them. The SEC’s goal is to make such information more consistent and comparable, he said. From pharmaceutical and retail to manufacturing and food and beverage companies, some larger organizations are working to get ahead of what will be required in the Rule.
#2. Good Progress, but European Banks will Soon Be on the Hook to Continue Adding More to Their Disclosures
In April, The European Central Bank (ECB) published its third assessment of the progress European banks have made in disclosing climate and environmental risks. A recent Reuters article states that while banks have, in the past year, increased the information they publish, apparently the quality of their disclosures is still too low to meet upcoming supervisory standards. The largest European banks generally have better disclosures than their non-EU-based counterparts but nonetheless fail to fully meet ECB expectations. The article reports that the European Central Bank (ECB) has warned 16 banks in the Eurozone that they are falling short of the ECB's climate risk management expectations and may face penalties. The warning comes as part of the ECB's annual review of banks' risk management practices.
#3. The European Union (EU) Regulators Looking to Address Gap in Climate Insurance Coverage
A recent Reuters article reports that European Union (EU) regulators have proposed ideas to address the gap in climate insurance coverage. Climate change has resulted in increased risk of natural disasters, making insurance companies hesitant to provide coverage. To address this, the EU regulators have proposed the creation of a state-supported reinsurer that would act as a backstop for insurers providing coverage for climate risks. The proposal also includes developing a "green bond" market to finance climate risk insurance, and encouraging the use of risk modeling tools to improve the pricing and availability of insurance products. The aim of these proposals is to increase the availability and affordability of climate risk insurance, which is critical to the transition to a more sustainable and resilient economy.
#4 New Report Suggests the Increase in Tornadoes is Linked to Climate Change
The increasing frequency and severity of tornadoes in the United States may be linked to climate change, according to a recent study covered by the Washington Post. The study found that rising temperatures and humidity levels are creating conditions that are more favorable for tornado formation and intensification.
Tornadoes are one of the most destructive weather phenomena, causing billions of dollars in damage and claiming hundreds of lives each year. The study's findings suggest that climate change could make tornadoes even more of a threat in the coming years.
The study's authors note that while tornadoes are a complex phenomenon, there is evidence to suggest that climate change is contributing to their increased frequency and severity. They point to the fact that the number of days with extreme tornado outbreaks has been increasing in recent years, and that these outbreaks are occurring in areas that were previously considered to be relatively safe from tornadoes.
The study's findings underscore the urgent need for action on climate change, as well as the importance of improving our ability to predict and respond to severe weather events. With the threat of tornadoes set to increase in the coming years, it is more important than ever that we take steps to reduce our carbon emissions and prepare for the impacts of climate change.
#5. Are the Proposed New Regulatory Disclosure Requirements Spurring Proactive Corporate Action?
New climate disclosure rules are set to be introduced, placing new requirements on companies to disclose their climate related risks. According to a Wall Street Journal article, many companies are embracing the new rules as an opportunity to improve their reputation with investors and consumers. While some are concerned about the potential costs and regulatory burdens associated with the new rules, companies are starting to adapt their reporting practices to meet the new requirements. This is where Jupiter and our ClimateScore™ Global, fit perfectly - new technology to simply and easily understand risks and meet regulatory mandates.
Want to learn more about where your company falls on the climate maturity index? Read about the 5 stages and let Jupiter help you get started with understanding your risk today.