Big investors are flagging climate change as a threat to financial security. The latest: State Street, one of the largest asset managers in the U.S. with $2.47 trillion under management. State Street is sending a letter to companies it invests in asking them to disclose their preparedness strategies.
The Boston-based firm has supported nearly half of climate-related proposals during shareholder meetings over the past year. Washington state’s public pension fund was an early mover on the issue, calling for greater transparency on climate change risk back in 2014.
The Industrial and Commercial Bank of China, the world’s largest bank, announced last year that it would implement environmental screening. “Climate change may be the poster child for risk out there,” said State Street’s Ronald O’Hanley.
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