The Financial Times reports that almost 200 companies have called on UK prime minister Boris Johnson to launch a green economic recovery plan, insisting that future corporate bailouts should take account of the UK’s net-zero climate target. The newspaper continues: “Business leaders – including the head of Lloyds Banking Group, the chief executive of Heathrow Airport and the UK country boss of BP – have sent a letter to the prime minister outlining their demands stemming from the coronavirus crisis…The letter was organised by the Prince of Wales’s Corporate Leaders Group, which wants the UK and Europe to achieve net zero emissions by 2050 at the latest, and five other non-profit organisations.” BBC News also covers the news, adding: “The signatories to the letter include Lloyds Bank, Asda, Siemens and Sky. The proposals outlined by firms such as Mitsubishi, Signify and Yorkshire Water in a letter to the prime minister include: Driving investment in low carbon innovation, infrastructure and industries; Focusing support on sectors that can best support the environment, increase job creation and foster the recovery – whilst also decarbonising the economy; Putting strings on financial support to ensure firms getting bailout cash are well managed, and in step with climate goals.”

Separately, Bloomberg reports that the International Monetary Fund (IMF) has warned that “investors worldwide are underestimating the financial risks from climate change and companies need to start disclosing their exposure”. The news outlet continues: “As global temperatures rise, severe climate events may impact companies owning assets in areas hit by drought, floods, wildfires and storms, the fund said Friday in the latest chapter released from its Global Financial Stability Report. At present, asset prices fail to reflect the risk of extreme weather events that may cost $1tn annually starting in 2050, the IMF said.” IMF researcher say in their report: “Equity valuations as of 2019 do not appear to reflect the predicted changes in physical risk under various climate change scenarios.” The Guardian also covers the IMF report. The Financial Times looks at new data compiled by Proxy Insight, which shows that “climate change resolutions at annual meetings received average shareholder support of 23% up to 20 May this year, compared with 16% during all of 2019”. However, despite this trend, Reuters reports that “a majority of French oil major Total’s shareholders have rejected a resolution by a group of investors aimed at changing the company’s statutes to do more to meet its obligations under the 2015 Paris climate accord”.

Guest post from Financial Times