http://www.ft.com/cms/s/0/181e160e-883e-11dd-b114-0000779fd18c.html

Climate change has altered several industries, and brought intense pressure to decision makers to respond rapidly to the problem. Recently, investors in London have chosen to challenge the usual measurements of a quality investment by asking for companies to provide information that reveals their carbon footprint. As they look ahead to further costs of not adapting to new policies and procedures to manage the issue, investors seek to avoid placing their money into a company that fails to weigh the financial risks they predict for the future.

The investors are basing their decisions on the belief that emissions will be more closely regulated around the world in future, giving companies that already manage their emissions a competitive advantage. They are also weighing other factors, such as the risk that companies may face future litigation, and the possible ill effects of climate change, such as floods and storms.

With uncertain economic times in the United States, it might be effective for companies to start reporting a reduction in carbon emissions as one way to win back investors around the world. If they haven't understood the impact of a strategic response to climate change, competitors might win with the corporate model that has emerged out of the enviromental crisis.

The Financial Times; September 22, 2008

Submitted by K. Rutherford