Utilities support bill that looks at financial risk of climate change

A bill introduced in Congress that looks at the financial impact of climate change has the support of several major utility and electric companies.

The Addressing Climate Financial Risk Act (S. 588), introduced by Sen. Diane Feinstein (D-CA) and Rep. Sean Casten (D-IL), would establish an advisory committee on climate financial risk within the Financial Stability Oversight Council (FSOC). The committee would consist of experts in climate science, climate economics, and climate financial risk.

The committee would advise FSOC and make recommendations on improving the U.S. financial regulatory system’s ability to identify and mitigate climate risk.

“Edison International supports the Addressing Climate Financial Risk Act of 2021, as it reinforces the need to address systemic risks posed by climate change to U.S. financial markets,” Pedro Pizarro, president and CEO of Edison International, said. “We view the bill as encouraging ESG disclosure practices that are critical to appropriately pricing financial risk related to climate change.”

Edison International is a California-based public utility. The legislation has support from other utilities and electric companies, including Pacific Gas & Electric (PG&E), San Diego Gas & Electric, and Sempra Energy.

“PG&E commends the leadership of Senator Feinstein and Congressman Casten in their introduction of the Addressing Climate Financial Risk Act of 2021,” PG&E Corp. CEO Patricia Poppe said. “Meeting the challenge of climate change – both mitigating and adapting to its impacts – is central to PG&E’s long-term vision and requires strong public policy, partnerships, and availability of data to help inform decision-making. The legislation would increase that availability of data and understanding on climate risk and provide recommendations on how to incorporate climate risks into our decision frameworks.”

Caroline Winn, CEO of San Diego Gas and Electric, said transparency and information are essential to addressing climate change risks.

“We applaud Senator Feinstein and Representative Casten’s forethought as we continue our efforts to equitably build safer, cleaner, and stronger communities, particularly for people of color and lower-income populations,” Winn said.