Investors tell European firms to reveal 'missing' climate costs in their accounts

FILE PHOTO: A firefighter is seen as New South Wales Rural Fire Service personnel conduct a controlled burn to eliminate fuels before the upcoming bushfire season in the Arcadia suburb of Sydney, Australia, September 8, 2020. REUTERS/Loren Elliott/File Photo

LONDON: Investors are pushing major European companies to make sure the "missing" costs of climate change are properly reflected in their financial statements, a move that could wipe billions of dollars off the value of sectors from energy to aviation.

The European and U.S. investors, who manage $9 trillion in assets, have sent 36 carbon-heavy companies a document setting out how they should account for the likely impact of the 2015 Paris climate accord on their future profits.