According to the latest U.S. National Climate Assessment, extreme weather events cost the United States nearly $150 billion each year, disproportionately hurting poor and disadvantaged communities. These events cast a long shadow on our economic landscape.
Whether it’s a wildfire in Maui, hurricanes in Florida, or flooding in New York City, the impacts of these disasters ripple across multiple sectors of the economy, leaving a trail of asset devaluation and increased insurance costs. As a result, these crises frequently move global markets, triggering a wave of financial pain that crashes down on not only the wheelers and dealers on Wall Street but also the millions of American workers who depend on their investment portfolios for retirement security.
It might seem odd to think that a fire in Hawaii could affect a teacher’s retirement in Maryland, but it’s true. And that’s exactly why I worked to pass legislation in my last year in office that mandates not only a regular study of our portfolio’s risk due to climate change but also requires that we treat climate risk as the investment risk it is.
As the comptroller of Maryland, I serve as the vice chair of the board of our State Retirement and Pension System, helping oversee $65 billion in assets, and diligently managing and safeguarding the financial interests of over 415,000 members. These beneficiaries are teachers, park rangers, nurses, state workers, public servants and others who help run our state and communities. It is my responsibility to evaluate all information available and ensure that they get the highest returns possible. As extreme weather events continue to intensify and our energy sources continue to transition away from fossil fuels, that means giving serious consideration to climate-related risks.
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