What to expect from the White House climate change report

Yahoo Finance's Julie Hyman takes a look at expectations for today's White House report on climate change

Video Transcript

JULIE HYMAN: What I'm watching today has to do with what we're going to hear from Washington on climate change. A new report coming out today from the White House, and President Biden is scheduled to speak later today about this. It has to do with-- it's sort of a progress report as to what the administration has done already on climate change. It also outlined some goals on climate change and says that US financial markets and institutions face systemic risks from climate change, which I think is pretty conventional wisdom, I think, at this point. And so they're talking about the need for a road map in order to address some of those changes.

I mean, what we're seeing on the regulatory front in Europe is quite interesting these days, because they have just passed new rules on ESG reporting and criteria that have actually sort of winnowed down the number of funds that can brand themselves as ESG in Europe. We haven't seen that yet here. But we are sort of not as far along here when it comes to ESG, when it comes to climate change regulation. So you wonder if that's coming down the pike at some point.

Biden is going to the United Nations climate change conference in Glasgow from October 31st to November 12th. Well, that's when it's happening. He's not going to be there the whole time. But this is sort of a precursor to that and something that investors should be watching closely. Are we going to see more regulations on this front? A lot of market participants would like carbon pricing to be one of the bigger, sort of, ways to address this versus regulation. Surprise, surprise. But it feels like we are going to get that regulation piece as well.

BRIAN SOZZI: Well, I definitely have some weekend reading here, Julie. The Jefferies team really did a deep, deep dive into all things ESG by individual companies. That's on my list to read over the weekend. But I am interested, Julie, if they're going to say anything here regarding space travel, you know, about the pollution they put out traveling to space.

JULIE HYMAN: I suspect not, but you never know.

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