Why some companies are supporting transparency about climate impacts (and some aren't)
Investors are zeroing in on the use of information known as environmental and social governance (ESG) data to identify risks that might not be captured on standard balance sheets.
One such risk is climate: none of the world's oil or gas companies disclose the potential emissions from their fossil fuel reserves even though world regulatory frameworks (and scientific reality) necessitate that a significant portion of those reserves remain in the ground. Cognizant of this, Exxon earlier this year took a huge financial hit and wrote down almost a fifth of its reserves.
Now a board of the world's bankers advising the G20 is encouraging member countries to adopt financial disclosure rules for companies to report their climate risk. Some firms are actually pretty amped about this.