Report: US companies preparing for climate change

Businesses across the U.S. are factoring global warming into their financial planning, according to a new report by the Carbon Disclosure Project (CDP).

The report, which examines 173 S&P 500 companies in nine different states, found that all companies expect some form of regulation to mitigate climate change.

{mosads}Many of the businesses are also reporting current and near term risks, and disruptions from extreme weather, the non-profit CDP said.

“Managing global warming impacts delivers competitive advantage to US companies,” said Tom Carnac, president of CDP in North America. “We are moving from a world that’s projecting future climate risks to one that’s experiencing those risks now. Regulation can help level the playing field, allowing more companies to benefit from mitigating the risks, while speeding up the shift to a profitable low carbon economy.”

According to CDP companies in California, Colorado, Michigan, Minnesota, North Carolina, Ohio, Texas and a few others are finding ways to increase energy efficiency through products, such as household good.

Of the eleven Texas companies researched for the report, nearly all are incorporating natural gas, wind, or solar into the energy mix.

When it comes to regulation, Bank of America in North Carolina states uncertainty surrounding new rules is a factor preventing them from low carbon investments.

On Capitol Hill, Congress is divided, mainly by party line, on the recent Environmental Protection Agency proposal to limit carbon emissions from power plants.

If the rules are legally challenged, once finalized, that may prolong uncertainty in the industry.