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risky business – Insurance companies are already on the front lines of climate change. Now they are at the forefront of the anti-ESG movement.
red state legislators texas, north dakota and south dakota It seeks to prevent insurers from taking into account environmental, social and governance factors when creating policies.
Conversely, activist shareholders and blue states seek to restrict insurance companies from investing in or underwriting oil and gas projects.a Specification The bill, introduced last month in Connecticut, would impose surcharges on insurance companies that underwrite fossil fuels.
It’s all a little rich for an industry that is based on risk assessment and pricing.
“ESG is in the DNA of insurers. Michelle Leonard, Chief Economist and Data Scientist at the Insurance Information Institute. “It is very difficult for the insurance industry to insure in an economically viable and sustainable way without paying attention to environmental patterns.”
Republicans are using the same argument in their attacks against other companies in the financial services industry. In other words, ESG risks are not material to a company’s bottom line, but rather a political calculation designed to appeal to the Left.
A Texas lawmaker said, “We don’t want to destabilize the insurance industry as a whole by infusing it with a lot of actuarially incorrect principles. Tom OliversonThe vice chair of the state House Republican caucuses, he introduced a bill that would ban insurers from considering ESG scores and diversity, equity and inclusion factors when setting rates.
The insurance industry has resisted this, arguing that such laws would undermine their business practices and could cause the kind of instability Oliverson warns. points out that considering climate change risks can help address issues such as stranded assets and high costs for disaster recovery. We also regularly look at credit ratings, his ESG scores, etc. that explain these risks. PwC research.
Doug AbrahamAPCIA lobbyist and bankrupt the insurance company.
APCIA too Against the Connecticut Bill, in public comment, wrote, “States should not use the tax system to try to prevent insurance coverage for disadvantaged industries.” The group warned that the law could also undermine people’s ability to recover damages from affected fossil fuel companies.
“Do these laws horrify you? I find them confusing,” says Leonard. If the bill is passed and interpreted to prevent us from seeing weather patterns, industry disruptions “could very quickly turn into a significant concern,” he said. You will question whether you can continue to be insured in some parts of the market.”
Scope 3 Senators — Democrats are speaking out to keep SEC climate rules as strong as possible, says Declan Harty report.
50+ MPs Wrote a letter to SEC Chairman Gary Gensler On Sunday, he urged him to keep the proposed rules in place. (Multiple news outlets have reported that Gensler is considering scaling back for fear of lawsuits. POLITICO reported that reporting Scope 3 emissions was at a loss, but The Wall Street Journal singled out the components of financial reporting.)
They called the idea of preemptively reducing the Scope 3 and financial reporting components of the rule to avoid legal risks “hugely misguided.”
“The proposed rule is necessary and overdue,” they wrote, adding that if the SEC watered down the plan, the SEC “would be unable to meet its obligations to protect investors.” .
Industry reaction: The banking industry said the rule should remove scope 3 requirements, citing “data quality challenges.”
“The proposed scope 3 emissions disclosure requirements are overly broad and would not result in consistent, comparable or reliable disclosures,” the Bank Policy Institute said in a statement.
Back to what’s not free — The District of Columbia has had trouble pushing its Metrobus fare free. I don’t have enough funds.
After the D.C. Council unanimously approved the proposal, the Washington Metropolitan Transportation Authority planned to start free buses this summer (although there was no mayoral endorsement specifically). Muriel Bowser). then CFO Glen Lee issued Reduced revenue forecast Last week was a backdrop of rising interest rates and a softening property market.
board member Charles AllenWhose behind the initiativeLee claims he has exceeded his authority by revoking its funding authorization. I hope
This fight can be seen as an example of how sustainability-focused projects can be the first to stand up when funding is tight. maybe. Bowser, who appointed Lee to his position, never endorsed the program.
“I think a lot of people come to that conclusion,” Allen told Jordan.
Windup — New Jersey poised to become an offshore wind hub but is about to land its first contracts for ratepayers, Ry Rivard report.
Danish developer Orsted is citing inflation, interest rates and supply chain issues as it tries to redo parts of a 2019 contract it signed with the New Jersey Public Utilities Commission to build 100 turbines. I’m trying to set it up 15 miles off the southern Jersey coast.
Orsted is considering retaining the federal tax benefits from the Inflation Reduction Act (a tax credit that covers up to 40% of construction costs), according to regulators, and previously under less generous incentives. As agreed, we are not sending the tax benefits back to the taxpayer.
The project is scheduled to be completed in 2025, but construction has not yet begun. Orsted is also working on another New Jersey project, and state regulators are just beginning to accept more proposals.
Game Start – Welcome to Long Game. Here, we discuss our latest efforts to shape our future. We bring you the latest in sustainability with data-driven storytelling, compelling interviews with industry and political leaders, and news Tuesday through Friday.
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— Multinationals warn that generous subsidies from the Inflation Reduction Act could interfere with the global economy. Minimum corporate tax negotiationFT report.
– teeth California Water Rights System Racist?Some argue so, LA Times report.
— BP Reduction for Renewable Energy Reuters, including keeping much of its wind and solar power for its own use rather than selling it report.
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