Tuesday, July 9, 2013

Should U.S. corporations disclose their externalities in their 10K reports?

Should U.S. corporations disclose their externalities in their 10K reports?

Of course they should.

Should Federal Government contracts with corporations include discloser of the externalities created by the contract requests?

Of course they should.

Should the insurance industry promote the recognition of externalities in the contracts they sign with various sectors of the economy they insure?

Of course they should.

As the magnitude of risk increases with the advent of climate change, let alone all the issues regarding water concerns, the repercussions on the climate and water alone are creating massive costs to the insurance industry.  The problem the insurance industry has, is they don’t know how and why it is happening and can't put a number on it because they don’t have the information they need to assess the insurance risks.  Or do they?

It’s time to start doing something about externalities.

The insurance industry is on the front lines of the negative effects of climate change, yet is given little or no options to confront these negative externalities that create the problems.

It’s time to start doing something about it.

The Security and Exchange Commission should include in corporate reporting, that corporation include their externalities in their reports to the SEC.

The Federal Government should include in their contracts that all externalities be included in the cost estimates in the contracts they let out for bid.

The insurance industry would then have a better understanding of the risks that they are insuring against.

Shouldn't the insurance industry be made aware of externality risks by corporate and government reporting and would then have a better understanding of the total risks involved?

Of course they should.

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