U.S. Climate Representative John Kerry proposes that companies identify climate change risks in their operations. This proposal follows a meeting with Kristalina Georgieva, Managing Director of the IMF.
Climate change and the need to communicate risks
Climate change was at the center of discussions between Kristalina Georgieva and John Kerry. During these meetings, he said that forcing various companies and financial institutions to disclose the risks related to climate change will cause multiple upheavals. They will mainly concern capital investments. Indeed, a better knowledge of the risks would lead to much greater investments.
Kristalina Georgieva added that it is necessary to have a better communication on the climate risks, they are at the center of the debates concerning the climate disruption.
Climate change brings risks. The objective is to anticipate and adapt to them. John Kerry intends to move in this direction by seeking to intensify global activity on climate change. While taking into consideration the climatic risks that result from it.
It is essential to prevent companies from ending up with worthless assets, due to a lack of anticipation of the developments associated with climate change.
Before COP26, which is to take place in November 2021, the transition to a new climate economy must be initiated.