Journal Editorial Report: The week's best and worst from Kim Strassel, Jason Riley & Dan Henninger. Image: Adrien Fillon/Zuma PressFrom electric vehicle initial public offerings to environmental, social and governance funds, opportunities in climate-related investments appear endless. Yet a troubling trend is emerging involving state and local governments’ general-obligation bonds and their judicial climate activism.
New Jersey became the latest plaintiff with a new lawsuit on Oct. 18. But New Jersey’s most recent GO bond offering indicates the state can’t account for climate risk having a material effect. According to its bond disclosure, the state warrants that it “cannot predict the impact that these climate events may have on its financial condition.”