WSJ Quote of the Day

In the June 15th 2006 Wall Street Journal, the Morning Report's Quote of the Day addressed the increased risk of certain markets due to the stressed environment and asking the SEC to require full disclosure of increased risk due to environmental concerns.

"Investors have a right to know if a company's buildings are in the path of hurricanes that might be exacerbated by climate change, or if it will face high costs when greenhouse gas emissions are regulated. They need that information to reduce their portfolio risk," said James Coburn, a policy adviser at Ceres, a coalition of environmental groups and investors who collectively manage more than $1 trillion in assets that sent a letter asking the Securities and Exchange Commission to require that companies disclose their financial vulnerability to changes in climate, the New York Times reports.

The article continues on a different page with writings from the New York Times.

Investors worried about the possible financial fallout from greenhouse gas emissions have asked the Securities and Exchange Commission to require that companies disclose their financial vulnerability to changes in climate.

Yesterday, a group of 27 investors who collectively manage more than $1 trillion in assets sent a letter to the S.E.C. chairman, Christopher Cox, asking that financial risks linked to climate change issues be included as part of routine corporate financial reports.

The letter, whose signers included several state officials, including the New York Comptroller Alan G. Hevesi, defines risk broadly.

"Investors have a right to know if a company's buildings are in the path of hurricanes that might be exacerbated by climate change, or if it will face high costs when greenhouse gas emissions are regulated," said James Coburn, a policy adviser at Ceres, a coalition of investors and environmental groups that sent the letter. "They need that information to reduce their portfolio risk."

Just as important, Mr. Coburn said, companies that are forced to quantify and disclose their vulnerabilities are far more likely to address them. "What is measured is managed," he said.

Mr. Coburn said Ceres faxed the letter to Mr. Cox, and sent e-mail copies to several staff members. It has also mailed copies to the chairman and commissioners.

A spokesman for the S.E.C., John Heine, said the agency had no comment at this time.