Dear Editor:
On April 30, Berkshire Hathaway shareholders voted on a resolution calling on the company to write a report about risks related to climate change for its insurance vendors. The resolution didn't pass which has one of our local climate skeptics excited that capitalist America has rejected climate science (see climate change hoax, May 3). Nothing could be further from the truth.
CEO Warren Buffett said he agreed with shareholders that a report wasn't needed because Berkshire mostly writes insurance policies for one-year periods. This will allow the company to regularly re-evaluate risks, such as climate change.
But Buffet also said he agreed that dealing with climate change is important for society. In fact, Berkshire Hathaway was among the first major U.S. companies to go on record for supporting climate policy prior to the Paris climate agreement.
In 2015 Berkshire Hathaway Energy joined 154 American companies in signing The American Business Act on Climate Pledge to demonstrate its support for progress at the Paris climate conference. These 154 companies have operations in all 50 states, employ nearly 11 million people, represent more than $4.2 trillion in annual revenue and have a combined market capitalization of more than $7 trillion. The Paris climate agreement happened with support from major corporations and that support isn't waning.
Shareholders were reassured by Buffett that increased costs to their insurance subsidiaries can be promptly matched by increased premiums. He even suggested that those increased premiums could grow that part of the company as climate changes. This doesn't contradict Mr. Buffett's support for climate policy.
In his shareholder letter Buffett said, "It seems highly likely to me that climate change poses a major problem for the planet." He added, "Likewise, if there is only a 1 percent chance the planet is heading toward a truly major disaster and delay means passing a point of no return, inaction now is foolhardy."
Issue-oriented letters to the editor are welcome. All letters should be limited to 400 words; letters may be edited to conform to guidelines. The author's name must appear with the letter, and the name, address and phone number provided for verification. Letters that cannot be verified by telephone will not be published. Email to [email protected].