New meaning to material ESG risk

Yesterday’s Bloomberg article on PG&E, which said, “PG&E Corp. told investors repeatedly that weather-related disasters were a risk, but many didn’t pay enough attention until the company was on the brink of bankruptcy,” highlights, at least in this case, how an environmental factor can have a material affect on investment performance. Moreover, the reporters importantly note that less customary risks, including those related to climate change, may be underappreciated.