{"id":32411,"date":"2016-12-13T10:38:15","date_gmt":"2016-12-13T10:38:15","guid":{"rendered":"http:\/\/www.climatechangenews.com\/?p=32411"},"modified":"2016-12-13T14:45:47","modified_gmt":"2016-12-13T14:45:47","slug":"risky-business-g20-panel-to-order-climate-stress-tests","status":"publish","type":"post","link":"https:\/\/www.climatechangenews.com\/2016\/12\/13\/risky-business-g20-panel-to-order-climate-stress-tests\/","title":{"rendered":"Risky business: G20 panel to order climate stress tests"},"content":{"rendered":"

Does you have a plan if the world moves rapidly away from oil, gas and coal? How will you be affected by increased extreme weather? What\u2019s your exposure?<\/strong><\/p>\n

CEOs of major corporations may not have the answers to these questions now, but by 2017 they will be expected to do so under radical – if voluntary – plans to be announced on Wednesday.<\/p>\n

That\u2019s when a G20-mandated panel of experts chaired by Bank of England governor Mark Carney will publish guidelines on how it wants business to tackle climate risk.<\/p>\n

It may have a dull name, but the Financial Stability Board\u2019s Task Force on Climate-Related Financial Disclosure<\/a> could deliver one of the strongest signals yet to business that climate change matters.<\/p>\n

\u201cWe think companies will pay more attention to this,\u201d an analyst with a major consulting group told Climate Home on Monday, alluding to previous demands for risk disclosure from green groups.<\/p>\n

One member of the 31-strong panel confirmed to Climate Home that companies would be asked to use the 2C warming limit outlined in the Paris climate deal as a benchmark.<\/p>\n

Weekly briefing:<\/strong>\u00a0Sign up for your essential climate politics update<\/a><\/p><\/blockquote>\n

Two other panellists – Mike Wilkins from ratings giant S&P and Jon Williams from consultancy PwC – told Bloomberg<\/a> that development of long term scenarios around 2C would be a recommendation.<\/p>\n

That means they\u2019ll need to explain how targeted greenhouse gas cuts will impact their bottom line: a painful reality check for many companies with large oil, gas and coal investments.<\/p>\n

Exxon Mobil is already fighting claims<\/a> from New York\u2019s attorney general it misled investors over the company\u2019s future profits in a carbon-cutting world.<\/p>\n

Coal giant Peabody faced a similar suit in 2015, and perhaps for good reason. While these companies make bullish projections, major banks seem less sure of\u00a0their prospects.<\/p>\n

A 2015 report from Barclays said the fossil fuel sector could lose US$34 trillion in revenues by 2040 if countries implement the Paris climate deal, with oil companies accounting for $22.4trn of that total.<\/p>\n

Earlier this year, leading fund manager Blackrock issued an equally bleak projection for coal\u2019s future<\/a>, warning \u201cinvestors can no longer ignore climate change\u201d.<\/p>\n

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ICYMI, IEA cuts coal demand forecast for fifth year in a row: https:\/\/t.co\/MGuaMJFLCl<\/a> pic.twitter.com\/ASs7t8drYg<\/a><\/p>\n

— Climate Home News (@ClimateHome) December 13, 2016<\/a><\/p><\/blockquote>\n