New Berkshire Hathaway CEO Ignores Financial Risks of Fossil Fuels in First Letter to Shareholders

OMAHA, Neb.- In his first letter to shareholdersas Berkshire Hathaway CEO, Greg Abel acknowledged that rising electricity demand and more frequent wildfires will impact the delivery of affordable and reliable energy to customers. He also noted that "the CEO is responsible for serving as Chief Risk Officer - there is no more important duty." However, Abel, who has held leadership roles in Berkshire Hathaway's energy portfolio since 1999, did not address how the multinational conglomerate's fossil fuel investments directly impact customer affordability and reliability, especially as climate change exacerbates the hot, dry conditionsthat lead to longer, more intense wildfire seasons. PacifiCorp, a Berkshire Hathaway subsidiary, has already been ordered by juries to pay more than $1 billion in damages following Oregon wildfires in 2020.

In response, Emma Colman, Beyond Coal Senior Campaign Organizer at Sierra Club, released the following statement:

"Berkshire Hathaway operates the dirtiest fleet of coal plants in the country, fanning the flames of climate change disasters like wildfires, droughts, and floods. If Greg Abel truly sees the role of CEO coinciding with the role of Chief Risk Officer, he must recognize that climate risk is financial risk. Without an accelerated roadmap to develop cheaper, cleaner energy resources and retire the company's coal plants, he puts both shareholders' and customers' interests at risk."

About the Sierra Club

The Sierra Club is America's largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit https://www.sierraclub.org.