The International Business Law Advsior Goes to Washington to Lobby for Global Warming Legislation--or is it "Global Weirding?"

I traveled to Washington D.C. a few weeks ago and spent several whirlwind days on Capitol Hill meeting with an assortment of Cabinet Members, Senators and Congressmen on pending climate change legislation. Thanks to climate and energy advocate extraordinaire Susan Glickman for putting the trip together,

Before anyone says anything--the irony of the snow falling on me as I made my way up the Capitol steps did not escape me. 

My involvement with the pending climate change bill stems from an innovative program my firm launched to accept carbon offset credits as partial payment for legal fees. Our firm’s program was the subject of a Wall Street Journal article, which you can read about here.

While others may not follow my lead, that's quite all right—I'm beholden to a much higher authority: my 15 month-old daughter. 

Although the meetings went smoothly, it appears less likely that the pending legislation will make it to vote this year. But I’m glad to see that interest in this heated debate only continues to build.

Famed internationalist and New York Times columnist Thomas Friedman wrote a proactive op-ed piece on the subject today.

In the article, Global Weirding is Here, Mr. Friedman proposes, among other thins, that we abandon use of the term “Global Warming” and adopt the term “Global Weirding.”

I’ll allow Mr. Friedman to explain:

Avoid the term “global warming.” I prefer the term “global weirding,” because that is what actually happens as global temperatures rise and the climate changes. The weather gets weird. The hots are expected to get hotter, the wets wetter, the dries drier and the most violent storms more numerous.

The fact that it has snowed like crazy in Washington — while it has rained at the Winter Olympics in Canada, while Australia is having a record 13-year drought — is right in line with what every major study on climate change predicts: The weather will get weird; some areas will get more precipitation than ever; others will become drier than ever.

More importantly, Mr. Friedman also proposes that, wherever you sit on the issue, population growth alone will be reason enough to demand renewable energy and clean water. He also points out how China is way ahead of the game:

Even if climate change proves less catastrophic than some fear, in a world that is forecast to grow from 6.7 billion to 9.2 billion people between now and 2050, more and more of whom will live like Americans, demand for renewable energy and clean water is going to soar. It is obviously going to be the next great global industry.

China, of course, understands that, which is why it is investing heavily in clean-tech, efficiency and high-speed rail. It sees the future trends and is betting on them. Indeed, I suspect China is quietly laughing at us right now. And Iran, Russia, Venezuela and the whole OPEC gang are high-fiving each other. Nothing better serves their interests than to see Americans becoming confused about climate change, and, therefore, less inclined to move toward clean-tech and, therefore, more certain to remain addicted to oil. 

 These are valid points. What are your thoughts on the issue?

Leave a comment below and let's get this issue rolling.

    -Santiago

Ch-Ch-Ch-Changes: SEC Switches Position and Issues Disclosure Guidance on Material Risks Impacting International Climate Change Accords.

SEC Wants to Know: Is Your Carbon Footprint a "Material Risk" to International Climate Change Agreements?

 

Climate Change is a red hot area right now and is a top priority of discussion this week at the World Economic Forum in Davos, Switzerland.

It seems that everyone is throwing their hat into the ring in one way or another.  Now the Securities and Exchange Commission has, rather surprisingly, entered the climate change picture.

 In an unprecedented move, the SEC issued a directive that companies should warn investors of global-warming risks.The SEC directive is the first economy-wide climate risk disclosure advisory in the world.

This change of face marks a complete turnaround for the commission, whose former Chairman Christopher Cox refused to address investor concerns regarding climate risk disclosure. Under the stewardship of SEC's current chairwoman, Mary Schapiro, the commission has made climate change a high priority. For international business this is a big deal.

The SEC issued a press released entitled “SEC Issues Interpretive Guidance on Disclosure Related to Business or Legal Developments Regarding Climate Change” that lays out some of these potential impacts and what it means for disclosure.  Among the areas highlighted by the SEC release:

Impact of Legislation and Regulation: When assessing potential disclosure obligations, a company should consider whether the impact of certain existing laws and regulations regarding climate change is material. In certain circumstances, a company should also evaluate the potential impact of pending legislation and regulation related to this topic.

Impact of International Accords: A company should consider, and disclose when material, the risks or effects on its business of international accords and treaties relating to climate change.

Indirect Consequences of Regulation or Business Trends: Legal, technological, political and scientific developments regarding climate change may create new opportunities or risks for companies. For instance, a company may face decreased demand for goods that produce significant greenhouse gas emissions or increased demand for goods that result in lower emissions than competing products. As such, a company should consider, for disclosure purposes, the actual or potential indirect consequences it may face due to climate change related regulatory or business trends.Physical Impacts of Climate Change: Companies should also evaluate for disclosure purposes the actual and potential material impacts of environmental matters on their business.

The SEC’s involvement in climate change regulation drives the federal government deeper into the climate debate, potentially reshaping management decisions at companies across the country and the world.  

What do I think? I think it’s about time that international environmental issues are put on the national agenda.  This is also good for investors. This paves the way for the development of a consistent standard for companies to report climate risk that will help all investors make better-informed decisions.

Trend to Watch: Look for Securities Regulators in Other Nations to Issue  their Own Climate Change Directives in the Very Near Future