Comments on: Disclosing Climate Change Risk, Cap And Trade Financials In SEC Filings http://www.dypadvisors.com/2009/07/14/disclosing-climate-change-risk-sec/ Wed, 01 Sep 2010 03:50:21 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Doug Park http://www.dypadvisors.com/2009/07/14/disclosing-climate-change-risk-sec/comment-page-1/#comment-40 Doug Park Tue, 14 Jul 2009 17:00:53 +0000 http://www.dypadvisors.com/blog/?p=457#comment-40 Thanks for reading and for your thoughtful comments. Your points are well taken. It is probably too early to expect corporations to disclose much about their climate change risks. That is why I posed the questions at the end of the post about the corporate governance of climate change risk. Thanks for reading and for your thoughtful comments. Your points are well taken. It is probably too early to expect corporations to disclose much about their climate change risks. That is why I posed the questions at the end of the post about the corporate governance of climate change risk.

]]> By: JV http://www.dypadvisors.com/2009/07/14/disclosing-climate-change-risk-sec/comment-page-1/#comment-39 JV Tue, 14 Jul 2009 16:52:43 +0000 http://www.dypadvisors.com/blog/?p=457#comment-39 Climate change is always an issue over decades and centuries. The risks of storms and heat spells are the only near term risks that companies should worry about and current insurance practices cover them along with settled tax law. Disclosure is the cost of insurance and the clean-up costs after the fact, if there are any that the company can use to its tax benefit. A cap & trade tax is another issue, as any new tax is. Until there are issued tax and accounting rules to follow the BoDs have no quantifiable risk to disclose at all. They, rather, have a responsibility to lobby against any adverse tax changes and disclose those costs in whatever local rules require. The only risk disclosures that a company would make at this juncture would be public relations based: white papers, press releases, etc.. These would typically be cost risks associated with any ill considered legislation. Climate change is always an issue over decades and centuries. The risks of storms and heat spells are the only near term risks that companies should worry about and current insurance practices cover them along with settled tax law. Disclosure is the cost of insurance and the clean-up costs after the fact, if there are any that the company can use to its tax benefit.

A cap & trade tax is another issue, as any new tax is. Until there are issued tax and accounting rules to follow the BoDs have no quantifiable risk to disclose at all. They, rather, have a responsibility to lobby against any adverse tax changes and disclose those costs in whatever local rules require.

The only risk disclosures that a company would make at this juncture would be public relations based: white papers, press releases, etc.. These would typically be cost risks associated with any ill considered legislation.

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