Climate Change Is the Only Constant - Pro view

CLIMATE Climate Change Is the Only Constant

Francis Scialabba

July's news cycle may be one day old, but it's already just like us: trying desperately to get Leonardo DiCaprio’s attention. Coal is out, green investments are in, and American farmers are working to adapt to changing weather.  First, Chubb phases out coal coverage and investments  Chubb (no relation to the offensively colored shorts) is the first big U.S. insurer to take a hard pass on coal. What that means: Chubb (+0.37%) won’t sell insurance to a) new coal-fired power plants or b) companies that derive over 30% of their revenue from thermal coal mining.  The insurer pointed to both the environmental damage and the business risks climate change can breed.  First the Mayflower, now insurance environmentalism: Chubb’s partaking in the latest trend to cross the Atlantic; European insurers have been backing away from coal for similar reasons for years.  Plus, the stock market is looking LEED-certified Green bonds and loans—i.e., those that finance sustainability projects—nearly outdid Lizzo last quarter. ETFs dedicated to green bonds snagged $1.1 billion in net inflows in June alone, more than tripling the $300 million of inflows from all of Q1. But don’t get too smug… There's a reason it's called a climate crisis and not a climate oopsies. Bloomberg reports American farmers are being forced to buy pricey new equipment to deal with unpredictable weather.   Remember, June 2018–May 2019 was the wettest 12 months in the contiguous U.S. since record-keeping began in 1895. A scientist told Bloomberg climate change likely had a role in the soggy season. That means farmers have to plant earlier and faster, which requires larger equipment and riskier, more labor-intensive strategies, like fast-growing seeds and cover crops. Bottom line: Businesses are beginning to face climate change head on, from investing in sustainability to adjusting for erratic weather, before the storm rolls in.