(FreedomBeacon.com)- According to a recent survey, most financial CEOs do not appear to support the environmental, social, and governance (ESG) movement when they are not publicly visible.
Adopting green energy, even when using traditional energy sources is more financially responsible, is one of the common ESG objectives. According to a CNBC poll issued on Thursday, only 25% of chief financial officers favor the Securities and Exchange Commission’s (SEC) plans to introduce climate reporting.
55% of financial managers oppose the rule, and 35% are “extremely” opposed. The 21 executives included several Fortune 500 CFOs.
CNBC found “signs of a rift” between technology companies aiming to help other businesses process ESG data and these CFOs.
SEC laws require corporations to disclose the risks climate change poses to operations, the consequences of “climate-related occurrences” such as extreme weather on transaction activities, and risk management techniques used to limit climate risk.
CNBC states, “there is no strong association between climate data and financial records.”
President Joe Biden said days after his inauguration that the White House is adopting a “whole-of-government approach” to put climate change at the center of domestic, national security, and international policy. Yue Chen, New York’s climate czar, is now the OCC’s chief climate risk officer. This Treasury Department agency regulates banks.
Six big banks will participate in a pilot study of climate change’s economic risks, the Federal Reserve stated Thursday. No regulations are affected. The central bank will also work with the OCC to promote private environmental projects.
Michael Barr, a member of the Federal Reserve Board of Governors, said in a recent speech that banks are worried about climate change’s impact on their balance sheets as the U.S. and the world battle to adapt.
The Fed tries to understand how climate change may influence institutions and the financial system. The Federal Reserve’s role in this sector is limited to oversight and ensuring a secure and stable financial system.
Vanguard and BlackRock have advocated ESG beyond monetary and fiscal authorities. In its investment stewardship report, the latter business said 53 of its portfolio companies must take “climate action” by 2020, while 191 are “under watch.”
BlackRock CEO Larry Fink recently said, “We’re collecting proof every day that climate risk equals investment risk.” This realization caused a tectonic shift.