Exposing global warming policies.  Take action now!

Disclosing the real risks of climate change 

SEC says companies must disclose risks due to climate change. Seize the opportunity.

February 8, 2010
by Paul Driessen

We are not weighing in on the climate debate. We are not opining on whether the world’s climate is changing, at what pace or due to what causes, Securities and Exchange Commission Chairman Mary Shapiro insisted on announcing the SEC’s new “interpretive guidance” on climate change.

The Commission’s two Republican members objected that the Obama Administration was using the Commission to promote its global warming and renewable energy agenda (along with the EPA, NASA, Defense and Interior Departments and others). It’s true, but irrelevant.

Environmentalists and “ethical investing” groups had pressured the Commission for years to require corporate disclosure on climate matters. Now, as the SEC steps in, the Copenhagen treaty negotiations have collapsed in disarray. Cap-and-trade has bogged down over senators’ fears of further damage to the economy and their reelection chances. The Environmental Protection Agency has decreed that plant-fertilizing carbon dioxide is a “dangerous pollutant,” because senators are increasingly reluctant to micromanage the economy, companies and families, but the regulations’ forward trajectory is uncertain.

Michael Mann’s “hockey stick” graph and the ClimateGate email scandals have metastasized into a tsunami of revelations that have besmirched the IPCC’s credibility and its role as dominant arbiter on matters of energy and climate. Manipulated and missing temperature data. Doctored computer models and disaster scenarios. Alarmist scientists rejecting any studies that dissent from climate catastrophe claims. Headline-grabbing disaster “studies” about melting glaciers and parched rainforests based on rank speculation or written by World Wildlife Fund activists. “Mann-made” climate change, indeed.

Investors certainly do have a “fundamental right to know” which companies are well positioned to address future crises and opportunities, and which are not – as we are frequently reminded by activist investor groups like Institutional Shareholder Services and CALPERS. However, these groups want to use the SEC decision to drive cap-and-trade laws and “endangerment” rulings forward, and drive hydrocarbon use into oblivion.

Many companies have been cowed into going along with this agenda. They seek to gain “a seat at the negotiating table,” curry favorable PR through “greenwashing” and “green-nosing,” protect themselves against lawsuits over CO2 emissions and global warming, or profit from renewable energy mandates, subsidies and stimulus grants.

But the “right to know” extends far beyond the activists’ narrow agenda. Indeed the lesson may be that this SEC guidance offers a tremendous opportunity for any company or investor wise enough to seize it. For the new guidance does not say companies must disclose only alleged risks from climate change.

It says they should also address impacts from legislation, regulation, international accords and their effects on business trends. This creates valuable opportunities for educating investors, customers, employees and voters about climate change issues.

Some 2,400 lobbyists are working on energy and climate issues in Washington. General Electric alone spent $7.6 million lobbying in the second quarter 2009, to secure stimulus, climate change and renewable energy dollars from US taxpayers. GE hopes to garner up to $192 billion over the next several years from projects funded by governments worldwide, including renewables and electricity grid modernization.

Wind turbine and solar panel sales are high on GE’s list, and will play a growing role. However, their electricity is 3-5 times more expensive than coal-based power, which translates into big taxpayer subsidies and more factory layoffs. Moreover, generating just 20% of US electricity with wind power would require some 186,000 turbines, 19,000 miles of new transmission lines, 18,000,000 acres of land (half of Illinois), and 270,000,000 tons of concrete, steel, copper, fiberglass and rare earth minerals (the equivalent of 180,000,000 Toyota Priuses). Even worse, a West Texas wind farm now under construction created 2,800 jobs – but 2,400 of them are in China. Solar power cost-benefit issues are similar.

Insurance companies and reinsurers may want to “disclose” alleged 20-foot higher sea levels and more violent hurricanes conjured up by computer models. These Gore and IPCC scare stories can translate into “increased risk,” higher premiums and additional profits. New York Senator Kirsten Gillibrand says carbon permits could be a “boon” for the Big Apple’s financial sector, creating a commodities market of “as much as $3 trillion by 2020.”

Other members of the climate-industrial-government-activist-scientist complex likewise have a big stake in global warming disasters and massive government spending to “prevent a cataclysm” and terminate our “perilous dependence on fossil fuels.” Exelon, Duke Energy, Penn State (Mike Mann again), NASA and other institutions all see huge potential returns on “investments” in climate alarmism and lobbying. 

But 38 states depend on coal for 35-98% of their electricity and a sizable portion of their jobs and tax revenues. While others get rich, they will pay dearly. While a few members left the US Chamber, because it opposes cap-and-trade legislation, most recognize the risks in laws and regs that will send energy costs skyrocketing, ship millions of jobs overseas, and shackle living standards and civil rights across America.

Carbon emissions trading on the Chicago Climate Exchange began at $1 per metric ton in January 2004. Prices then fluctuated wildly, reaching a $7 peak value in May 2008, before crashing to $0.10 in October 2009. Speculators who entered the carbon market on 5/30/08 lost 98.6% of their investment.

Imagine how they might have fared if SEC rules had compelled utility companies, the Chicago Climate Exchange, and Al Gore’s Generation Investment Management firm to truthfully disclose what was going on in the IPCC, Climate Research Unit and NASA. Imagine the roller coaster ride that GE, Exelon and Munich RE investors could take, as more sordid details come out of the IPCC, concerns soar about US deficits and credit ratings, and taxpayer anger rises over climate fraud, subsidies, and sweetheart deals that corporate lobbyists have negotiated with Congress and the Administration.

(Pfizer and Big Pharma’s recent experience with Congress over national healthcare should serve as a cautionary tale. See Kimberly Strassel, “Pfizer’s bad political bet,” Wall Street Journal, February 5, 2009.)

Investors have a right to know all these complex facts. That’s where the SEC guidance offers vital opportunities for intelligent investors and socially responsible companies. They should carefully consider how to comply with the Commission’s ruling in the areas it has identified.

Physical impacts of climate change: Are the impacts real, or generated by computers and activists? What is the current state of climate science and its integrity, transparency and accountability? 

Impacts of legislation, regulation and international accords: Are projected future profits based on current and reliable vote counts and realistic assessments that a binding climate treaty will be agreed to? As Climategate unfolds and 2010 elections approach, will wind turbine makers and carbon traders benefit – or will it be hydrocarbon-based industries like chemicals, manufacturing, airlines and tourism?

Indirect impacts on business trends: Are profit projections based on melting glaciers and other Climategate fraud, greenwashing, backroom lobbyist deals, or wishful carbon trading? How will new laws affect demand for goods in industries that have recently been extolled – or vilified? How will they affect consumers?

It has become increasingly clear that the real risks to businesses, investors, employees, and low-income, minority and elderly families are not from climate change. They are the result of policies enacted in the name of preventing climate change. The SEC guidance can help identify risks and opportunities – and advise people about them in a timely, accurate, responsible manner. Socially responsible companies will seize the opportunity. 

 

Paul Driessen is senior policy adviser for the Committee For A Constructive Tomorrow (CFACT), which is sponsoring the All Pain No Gain petition against global-warming hype. He also is a senior policy adviser to the Congress of Racial Equality and author of Eco-Imperialism: Green Power - Black Death.
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{ from CFACT drops the banner on Greenpeace ships }

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{ from CFACT drops the banner on Greenpeace ships }

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{ from CFACT drops the banner on Greenpeace ships }

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{ from CFACT drops the banner on Greenpeace ships }

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{ from Monckton names names on Climategate }

Dr. Singer says global warming made up by man, not man-made...

{ from Is global warming from man? }

Prominent group of climate protesters shows some interesting colors at Copenhagen rally...

{ from Socialists and Communists march to support global warming agenda }

Are we really losing one football field every minute?...

{ from The clear-cutting facts about the rainforest }

The developing world is told to make sacrifices to save the planet...

{ from CFACT's Morano debates UN climate treaty on Britain's Sky News }

CFACT's delegation arived in Copenhagen, Denmark to educate delegates and media from around the world that the climate change treaty is All Pain No Gain....

{ from CFACT arrives in Copenhagen }

Singer, Morner, Plimer headline all-star science cast...

{ from CFACT sponsors climate science conference: The debate is not over }

Facts challenge organic's benefits over modern agriculture...

{ from Are organic foods really better? }

The proponents of global warming talk emotion and anecodote, while the realists talk facts, figures, measurements, history and scientific analysis...

{ from National Journal: Clash between the Guardian and science }

CFACT's delegation arived in Copenhagen, Denmark to educate delegates and media from around the world that the climate change treaty is All Pain No Gain....

{ from CFACT arrives in Copenhagen }

Dr. Singer says global warming made up by man, not man-made...

{ from Is global warming from man? }

If an herbicide, that can drastically improve farming, has proven to be safe for not only the animals in the environment, but also humans, it should be used, right? Not according to the EPA....

{ from Is government standing in the way of lower food costs? }

The future of the bay looks bright: stewardship at its best....

{ from Science to save the Chesapeake Bay }

International efforts to ban chicken coops harms birds, farmers...

{ from In praise of cages for egg laying hens }

How do you turn something as plentiful as grass into food? Feed it to cows and have a B.B.Q.! U.S. meat production per acre has doubled since 1970, largely due to pesticides, veterinary chemistry, and better plant breeding...

{ from Giving up meat to Save the Planet? }

How do you turn something as plentiful as grass into food? Feed it to cows and have a B.B.Q.! U.S. meat production per acre has doubled since 1970, largely due to pesticides, veterinary chemistry, and better plant breeding...

{ from Giving up meat to Save the Planet? }

The future of the bay looks bright: stewardship at its best....

{ from Science to save the Chesapeake Bay }

How do you turn something as plentiful as grass into food? Feed it to cows and have a B.B.Q.! U.S. meat production per acre has doubled since 1970, largely due to pesticides, veterinary chemistry, and better plant breeding...

{ from Giving up meat to Save the Planet? }

How do you turn something as plentiful as grass into food? Feed it to cows and have a B.B.Q.! U.S. meat production per acre has doubled since 1970, largely due to pesticides, veterinary chemistry, and better plant breeding...

{ from Giving up meat to Save the Planet? }

International efforts to ban chicken coops harms birds, farmers...

{ from In praise of cages for egg laying hens }

Scientific "consensus" and other shady sales tactics promote alarmist theories...

{ from Global warming bait-and-switch }

Scientific "consensus" and other shady sales tactics promote alarmist theories...

{ from Global warming bait-and-switch }

Three California counties reject measures to ban the use of GM crops...

{ from Voters voice support for biotech farming }

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  • Eco-terrorism hits Maryland: 'Inconvenient Terrorist' latest in long line

    Inconvenient terrorist James Lee who was shot and killed by a SWAT team in the Discovery Channel Building in Silver Spring, Maryland, is the latest of a long line of eco-terrorists

  • An Inconvenient Terrorist

    Armed eco-terrorist who experienced an “awakening” by watching Al Gore's Inconvenient Truth was shot and killed after storming Discovery Channel Building. Radical manifesto condemns 'parasitic children' and human civilization, calling for sterilization and giving the planet back to the squirrels.

  • An ill wind in New Jersey

    Proposed windmill would cost $7 million, stand taller than the Statue of Liberty, and when the wind isn't blowing would need to be kept turning with electricity from a traditional plant in order to avoid mechanical failure.

  • End environmental experiments on Africans!

    Environmentalists are using African parents and children in anti-DDT experiments. They are playing with our lives. So are the government agencies and others who support their policies. This is wrong and immoral. And it is only one of the ways they use Africans as experimental laboratory animals.

  • Prepare for an ice age!

    "Little ice ages" are the flip side of the 1500-year warming cycle. We should take advantage of the favorable climate we are currently enjoying to increase research on high-yield agriculture, biotechnology, water conservation and other advances now only dreamt of.

  • Howard Stern: 'Bring back DDT!'

    Stern argues that New York's bedbug problem is nothing compared to the millions dying from malaria in Africa, quoting extensively from an article by CFACT's Paul Driessen.

  • New York's bedbugs vs. Africa's malaria crisis

    Our obsession with pesticide “risks” has very different consequences for America and Africa.

  • How to save the Chesapeake Bay: Oysters vs. Regulations

    Oysters kept the Bay clean in the past, but the EPA is ignoring this proven solution in favor of big government regulations.

  • New ethanol policy poses heavy cost for consumers

    E15 ethanol mandates would bring huge benefits for ethanol producers at the expense of the rest of us.

  • Empowering the poor in the Yucatan jungle

    Local villagers struggle to survive in Becan, but a new program promises to bring prosperity by unleashing their creativity and energy.

  • The global warming fleecing of the American taxpayer

    The federal government has spent tens of billions of taxpayer dollars on research that has completely failed to affect temperatures or demonstrate an empirical link between human CO2 emissions and global warming.

  • Target: Monckton

    Lord Monckton is under attack, a sure sign that he’s winning on warming. Monckton fights back and refutes Prof. Abraham.

  • New coal mine approved in Utah

    In a victory for the nation’s beleaguered resources industry, Utah officials have approved a permit for a coal mine in their state.

  • EPA set to crack down on farm dust

    Agency believes dust is a pollutant and wants to impose stringent limitations on the amount of dust farmers are allowed to kick up while plying their trade.

  • Climate Depot’s award hat trick

    Marc Morano receives another award for his journalism covering the global warming movement.

  • Climate proposals threaten pursuit of happiness and justice

    New study documents harmful effects of “cap-and-trade” and “endangerment” schemes.