Stop Bankrolling Carbon-Intensive Projects
The current fiscal crisis on Wall Street reveals what can happen when long-term risk is ignored in the interest of short-term gain. Like subprime mortgages, climate change present far-reaching hidden dangers, and the financial industry should be paying attention. If you're a Wall Street research analyst, bond rating agency, or bank, you should scrub your portfolio of subprime carbon assets that may prove toxic in the years ahead. Cap-and-trade programs are being launched in several regions around the world, which will affect coal plant operators' bottom lines. To avoid a debacle like the one we're facing today, financial players must stop bankrolling carbon-intensive programs.
Today's Management Tip was adapted from "Short-Term Strategies Don't Work for Wall Street or the Planet," posted by Mindy S. Lubber.
May 27, 2009; 9:00 AM ET
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