Good afternoon, and welcome back to the Griddle, a menu of fortified items for the busy person's media diet. Large institutional investors own a wide cross-section of the global economy. That exposes them to stock swings and economic slumps, but also to risks that fall outside classic investment analysis. These externalities include the largest of them all: climate change. A group of investors yesterday sent a letter to the Bank of England voicing concern that the government has failed to understand the scale of carbon risk. They urged an examination of the exposure of the nation's financial system to companies that rely on carbon emissions, mining or drilling, or other 'environmentally unsustainable' practices. "Regulators are not monitoring the concentration of high-carbon investments in the financial system and have no view on what level would be too high," the authors wrote. It's a shortcoming that's far from unique to the U.K.
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