Our managing partner, Mordechai Breier, was featured in a U.S. News & World Report article exploring the growing financial risks industries face as California wildfires intensify. Beyond utilities, sectors like insurance, agriculture, tourism, and real estate are increasingly vulnerable to the impacts of climate change.
“Industries that rely on stable natural resources, such as agriculture, water management, and tourism in disaster-prone areas, could face significant challenges,” says Breier. “As climate change affects weather patterns, resources, and ecosystems, these sectors may also see increasing difficulties.”
He adds, “Insurance companies operating in California, particularly those covering homes in high-risk wildfire zones, are the most exposed. Insurers who have stayed in California are facing significant financial strain due to the increasing frequency and severity of wildfires.”
Breier also emphasizes the importance of climate-risk disclosure: “If companies are no longer required to disclose climate risks due to the removal of ESG rules, investors would have less transparency, making it harder for them to assess long-term risks associated with climate change. Investors may need to rely more on independent research or other disclosure mechanisms to understand and evaluate climate-related risks.”
To read the full article, visit: U.S. News & World Report.
