Michael Bloomberg, founder of Bloomberg LP, the U.N. Secretary-General's Special Envoy for Climate Action, published a piece in the LA Times Friday on the financial risks of climate change. Specifically on PG&E's filing for bankruptcy.
PG&E filed for bankruptcy last week, citing climate change as the reason it could no longer afford the increasing liability costs of wildfires fueled by the drier weather in California.
According to Bloomberg, we are "flying blind when it comes to the serious economic costs we face from climate change."
The financial risks climate change will bring to electric companies can't necessarily be measured so Bloomberg suggests improving climate risk disclosure, whether that be in a New Green Deal or elsewhere.
"If investors don't know the potential liabilities a company is facing, they may overvalue it and lose their shirts," Bloomberg writes. The PG&E bankruptcy is a serious challenge for California, but it should lead more public companies to begin identifying and disclosing the potential liabilities they face from climate change," he continued.
Read more here .
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