[Congressional Record Volume 167, Number 84 (Friday, May 14, 2021)]
[House]
[Page H2346]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
THE CLIMATE CRISIS ISN'T JUST ABOUT WEATHER
(Mr. CASTEN asked and was given permission to address the House for 1
minute.)
Mr. CASTEN. Madam Speaker, wildfires, flooding, and superstorms are
the most tangible signs of a warming planet, but the climate crisis is
not just about weather. It is about wealth.
A recent study by Swiss Re found that if we remain on our current
trajectory, global GDP will fall by 18 percent by 2050. Investors
understand this. They care about climate change because it is in their
economic self-interest.
As BlackRock CEO Larry Fink said, ``Climate risk is investment
risk.'' Main Street investors have put $37 trillion, roughly one-third
of all assets under management, into climate-focused ESG investments.
Unfortunately, our regulation has not kept up with that demand. There
is no consistent definition of how to quantify a firm's contribution
to, or protection from, a warming globe. Left to choose from a menu of
methodologies, companies often just pick what is most favorable to
them.
We don't allow companies to pick their own financial accounting
standards. Investors are asking us to provide the same consistency for
their climate accounting. That is why I introduced the Climate Risk
Disclosure Act, which directs the SEC to create consistent mandatory
climate reporting standards for all public companies.
This will allow companies to compete for capital on a level playing
field, providing investors with the certainty they need to hedge their
financial risk. Yesterday my bill passed committee and will now come to
the floor.
The right time to safeguard our financial system against climate
change was decades ago, but our last chance is now.
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