Yergin: Financial disclosures on climate would create “false sense of security”

Daniel Yergin, vice chairman of IHS Markit and author of the Pulizer Prize-winning book “The Prize: The Epic Quest for Oil, Money and Power.” ( Michael Paulsen / Houston Chronicle )

A proposal by the Financial Stability Board that would require companies to report the risks climate change poses to their business needs to be overhauled,  author and energy guru Daniel Yergin said Tuesday.

“Some of this could be useful to investors,” he said at an event in Washington at the US Chamber of Commerce. “But other recommendations would create what we call a false sense of security.”

Created out of the 2008 global financial crisis, the FSB has been tasked by the world’s largest economies with creating regulation to allow investors to see how a given company would perform under scenarios like droughts or rising sea level or controls on carbon pollution. They are scheduled to make their final recommendations at a G20 summit in Hamburg in July.

But Yergin and his colleagues at the research firm IHS Markit argue making such predictions is highly speculative and likely to be proven wrong.

“We think this is a conflation of scenarios and forecasting,” said Antonia Bullard, Vice President at IHS Energy. “It doesn’t seem appropriate to us at all.”

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