pollution from a smoke stack The first-in-the-nation stress test specifically assessed companies financial ties in fossil fuels. (Photo: rivalstrife/iStock)

In an unprecedented move, California has become the first state to conduct a climate-related financial risk stress test and analysis of insurance companies' investments in fossil fuels. The test was issued by the California Department of Insurance (CDI) and Insurance Commissioner Dave Jones.

2° Investing Initiative, a global think tank on climate risk, conducted this analysis for insurers in California's insurance market with over $100 million in annual premiums. The insurers analyzed in this test have over $500 billion in fossil fuel-related securities, $10.5 billion of which consists of investments in thermal coal enterprises.

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Danielle Ling

Danielle Ling is an experienced video journalist and business reporter. As associate editor, Danielle manages all multimedia and reports on industry news and risk-related coverage, managing all weather-related content. A University of Maryland and Philip Merrill College of Journalism alum, Danielle previously served as a video journalist for Verizon FiOS 1 News NJ, Push Pause. Connect with Danielle on LinkedIn or email her at [email protected].