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Using Financial Regulation to Fight Climate Change: A Losing Battle

Using Financial Regulation to Fight Climate Change: A Losing Battle
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Climate Models Are Not Designed for Use by Financial Markets, Scientists Warn

Climate Models Are Not Designed for Use by Financial Markets, Scientists Warn Misuse of climate models could pose a growing risk to financial markets by giving investors a false sense of certainty over how the physical impacts of climate change will play out, according to the authors of a paper published on Monday. With heat waves, wildfires, massive storms and sea-level rises projected to intensify as the planet warms, companies are under growing pressure to disclose how the disruption could affect their businesses. But the authors of a peer-reviewed article in Nature Climate Change warned that the drive to integrate global warming into financial decision-making had leap-frogged the models used to simulate the climate by “at least a decade.”

Potential for misuse of climate data a threat to business and financial markets

Date Time Potential for misuse of climate data a threat to business and financial markets Climate information is at risk of being misconstrued and used inappropriately in financial reports and has the potential to expose businesses to significant risk, according to a new paper by Australian researchers. The findings are published in the prestigious journal, Nature Climate Change, and calls on businesses, the financial services industry and regulators to work more closely with climate scientists. Regulators and governments – both domestic and international – are increasingly requiring that businesses assess and disclose their vulnerability to the physical effects of climate change, for example, increased drought, bushfires and sea level rise.

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