14 April 2005 - Leading US institutional investors have called on the electric power industry to report within a year how future greenhouse gas limits will affect their financial bottom lines.
The investors also called on the top bond rating agencies and major Wall Street investment firms that structure financing packages, to include climate risk analysis in their ratings of power sector investments.
Phil Angelides, a board member of the California Public Employees' Retirement System, said: "Shareholders need to know if the companies they own are going down the prudent path by adopting strategies that will enable them to survive or thrive in a world of increasing environmental concern, or whether they are taking the path of denial, risk, liability and cost."
The investor requests follow first time climate risk evaluation reports by three of the nation's largest power sector companies, American Electric Power, Cinergy and TXU, which were called for by their shareholders.
Denise L Nappier, Connecticut State Treasurer, said: "It's time for the rest of the industry to provide shareholders with a thorough analysis of both the risks and opportunities, so that long-term investors can make informed decisions."
More than 100 new coal fired power plants will be constructed over the next few years and according to a report from Ceres, investments in these plants could be substantially affected when greenhouse gas regulations are adopted by the US.