PG&E Warned Investors About Disasters. It Was Mostly Ignored
- Company has long blamed climate change for increase in fires
- ‘Risk creeps into places you least expect it to,’ one PM says
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PG&E Corp. told investors repeatedly that weather-related disasters were a risk, but many didn’t pay enough attention until the company was on the brink of bankruptcy.
The company included warnings in its regulatory filings and offering prospectuses citing how disasters like wildfires, droughts and floods, could weigh on its results or disrupt its operations. But until mid-November, the company’s bonds were trading above face value, even those due decades from now, implying that money managers thought those risks were manageable.