Climate Change Needs To Be on the Balance Sheet
Posted on February 7, 2020 by Yves Smith
Yves here. Proper climate change accounting is long overdue. Just think if corporations had been made to record the cost of pollution or climate change remediation as a contingent liability…
By Richard Murphy, a chartered accountant and a political economist. He has been described by the Guardian newspaper as an “anti-poverty campaigner and tax expert”. He is Professor of Practice in International Political Economy at City University, London and Director of Tax Research UK. He is a non-executive director of Cambridge Econometrics. He is a member of the Progressive Economy Forum. Originally published at Tax Research UK
The FT has an article in it this morning from Natasha Landell-Mills, who is head of stewardship at Sarasin & Partners. In it she argues that:
What gets measured gets managed. The climate impact of business and consumer decisions is not being fully measured and thus not being properly managed.
I wholeheartedly agree. And I also agree that a carbon tax is not the solution to this issue – because a tax at $75 a tonne has consequences that are unmanageable in the rest of the economy. In that case I also agree that alternative actions are need. Natasha Landell Mills identifies five. As she notes:
https://www.nakedcapitalism.com/2020/02/climate-change-needs-to-be-on-the-balance-sheet.html
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