Ultimately, effective climate governance requires boards and managers working together on strategies to control greenhouse gas emissions, with stakeholder disclosure and investor accountability. Given the sweeping global nature of climate change, climate risk has become embedded, to a greater or lesser extent, in every business and investment portfolio. Companies face not only new risks from regulations, but also direct physical risks that are becoming increasingly apparent. Climate change deserves discussion in securities filings in the many instances in which direct financial risks or opportunities can be identified.

*Physical Risk: Businesses are at risk from the physical impacts of climate change, including the increased intensity and frequency of severe weather events, droughts, floods, storms and sea level rise.

*Regulatory Risk: State, national, and international regulations are putting increasing pressure on companies with emissions from operations or products to invest in emissions controls, purchase carbon credits, or alter their energy use patterns.

*Competitive Risk: Tightly linked to regulatory risk, climate risk preparedness is emerging as a key driver in a company's reputation, growth prospects and ability to compete.

*Technological Opportunities: Companies in many sectors can increase profitability by implementing energy efficiency strategies and developing emission-reducing technologies that meet changing corporate and consumer demands in a carbon-constrained world.

In short, the stakes could not be higher for U.S. companies and investors. The greatest investment opportunities as this new era takes hold will lie with companies that capitalize on this emerging shift in global energy use and production methods. The greatest risks will be with those that choose to ignore those trends and try to carry on with business as usual.