A flagship report found that acting on climate change and improving the economy go hand in hand, which was reported by business media outlets across the globe. But three prominent outliers left their audiences in the dark: CNBC, Fox Business, and The Wall Street Journal.*
On September 16, many major business media outlets from Fortune Magazine to BusinessWeek reported on a recent analysis finding that the next 15 years are essential for acting on climate change, and that it is possible to do so while simultaneously growing the global economy. The report, titled "The New Climate Economy" and carried out by the Global Commission on the Economy and Climate, refutes the "false dilemma" between economic growth and climate change mitigation -- an important finding for businesses that want to thrive in the decades ahead. From Reuters:
Investments to help fight climate change can also spur economic growth, rather than slow it as widely feared, but time is running short for a trillion-dollar shift to transform cities and energy use, an international report said on Tuesday.
Yet the report was ignored by three prominent business media outlets -- a disservice to their business audiences who deserve to know the economic risks of global warming. The outlets that ignored the findings of the "New Climate Economy" report may not come as a surprise: CNBC, Fox Business, and The Wall Street Journal all have a sordid history with reporting on climate change.
When the "Risky Business" report was released earlier this year -- another report detailing the economic costs of climate change inaction -- CNBC was caught soliciting a writer to talk about "global warming being a hoax" to rebut the report's findings. The network's on-air coverage of "Risky Business" featured Squawk Box co-host Joe Kernen criticizing the acceptance of global warming as "Orwellian groupthink." Media Matters analyses found that CNBC misled their audience on global warming in the majority of their reporting on the topic in 2013.
Fox Business also regularly offers demonstrably false reporting on global warming. Co-hosts have often claimed that global warming is over, or even that we are in a period of global cooling. When the Risky Business report was released, Fox Business mocked its findings of heat-related mortalities and dismissed the report entirely as using "scare tactics."
Similarly, Wall Street Journal dismissed the findings of the Risky Business report, with its editorial board calling one of its authors' suggestions for a carbon tax as economically harmful as the 2008 financial crisis. The Journal has downplayed and dismissed the impacts of climate change and other environmental threats for decades, and gives a frequent platform to "skeptics" that urge inaction on climate change and dismiss the basic science behind the consensus.
The New Climate Economy was heralded by political leaders around the world advocating a transformation in the global economy. By ignoring it, these outlets are showing that their priorities are at odds with businesses that want to prosper in a changing climate.
*Based on a search of internal video archives from September 15 to 12 p.m. September 17 for "climate" for Fox Business and CNBC, and a Factiva search for "climate" for Wall Street Journal.
Reuters and CNBC uncritically promoted a new report claiming that government regulations cost the economy over $2 trillion each year, ignoring any benefits of regulation. But the study uses the same flawed methodology as an earlier report by the same authors that was so widely panned that even the organization that commissioned it distanced itself from it.
Charles and David Koch, brothers and the oil barons who are already shaping the 2014 midterm elections according to recently leaked audio recordings, are often portrayed as environmentally responsible advocates of the free-market that are unfairly targeted by Democrats. However, their political influence, which benefits the fossil fuel industry and their own bottom line, is unparalleled.
From the July 25 edition of CNBC's Squawk on the Street:
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CNBC panelist Jeffrey Sonnenfeld suggested that 21st Century Fox's effort to acquire Time Warner is driven by a nepotistic desire to provide Rupert Murdoch's "poor performing" sons with pieces of the family business and highlighted News Corp.'s phone hacking scandal as an example of the Murdoch family's questionable management record.
Time Warner's board of directors took measures to prevent a hostile takeover by Rupert Murdoch's 21st Century Fox by "eliminating a provision in its bylaws that let shareholders call special meetings" -- a move that would prevent shareholders from forcing a vote on the takeover until June 2015.
Panelists on the July 22 edition of Squawk Box suggested Fox's offer undervalues Time Warner. Sonnenfeld, also a dean at the Yale School of Management, went on to say the takeover effort was part of the Murdoch family's plan to "deal with potential succession" by acquiring large businesses to hand over to Murdoch's sons, James Murdoch and Lachlan Murdoch. But Sonnenfeld described the sons as "poor performing" managers, saying in particular that James Murdoch had been tainted by the phone hacking scandal at News Corp.
SONNENFELD: This is basically a deal for Rupert to eventually -- an 83-year-old guy who's run the company for 62 years -- to try to deal with these perpetual succession questions by giving, you know, Lachlan, one son one piece of the business -- one, you know, poor-performing son -- the other poor-performing son, James, another piece of the business in the News Corp.-21st Century Fox split here. But all this [unintelligible] --
ANDREW ROSS SORKIN (host): So you are not a fan of the Murdoch family, it sounds like.
SONNENFELD: Well, they've not distinguished themselves as leaders. You know, Lachlan had a temper tantrum and left a couple years ago and just came back in this spring with this deal for News Corp. liberation of sorts. And then the 21st Century Fox, we have James, who certainly has soiled himself in the whole scandal -- the phone hacking and all the rest in the U.K. And at minimum, a failure of management oversight is awful. Even Fox's shareholders were pretty upset with him.
The cable business channel CNBC continued to push climate change denial on its network, hosting a professor who compared the "demonization" of carbon dioxide to the Holocaust.
Physics Professor William Happer has published no peer-reviewed research on climate change, yet co-host Joe Kernen introduced him as an "industry expert" on the July 14 edition of Squawk Box. After a softball interview with Kernen, co-host Andrew Ross Sorkin challenged Happer for "not believ[ing] in climate change" -- to which Happer responded by telling Sorkin to "shut up." Sorkin then asked Happer about comments he made to The Daily Princetonian in 2009 comparing climate science to Nazi propaganda. Happer doubled down on his comments, stating that "the demonization of carbon dioxide is just like the demonization of the poor Jews under Hitler. Carbon dioxide is actually a benefit to the world, and so were the Jews."
Sorkin also noted that Happer, who has suggested that people should be "clamoring for more atmospheric carbon dioxide," is the chairman of the Marshall Institute, which received $865,000 from ExxonMobil from 1998 to 2011.
While Sorkin's pushback was admirable, it's difficult to determine what benefit CNBC is giving its business viewers by once again hosting Happer to push climate denial, especially as it's becoming clear that unchecked climate change is inherently an economic issue that provides serious risks to businesses. A 2013 Media Matters report found that 51 percent of CNBC's climate change coverage cast doubt on the basic fact that the Earth is warming and that the majority of recent warming is manmade, contrary to a consensus of 97 percent of scientists. The channel recently came under fire for soliciting a story about "global warming being a hoax."
CNBC might also be able to find a few scientists who question whether HIV causes AIDS, whether secondhand smoke is dangerous, or whether vaccines cause autism -- as all three have a few contrarian "experts" supporting their cause -- but it wouldn't be responsible to give them a platform.
CNBC's Closing Bell hid its own conflict of interest and the industry ties of the telecommunications industry front group Broadband for America while providing co-chairs of the group a platform to attack government regulations of the Internet and broadband access.
On the July 14 edition of CNBC's Closing Bell, host Kelly Evans interviewed Harold Ford, Jr. and John Sununu about the FCC's latest proposed regulations, introducing them as "Broadband for America honorary co-chairs," without explaining what Broadband for America was. Both Ford and Sununu insisted that the Internet should not be treated as a public utility and claimed that new regulations would slow Internet speeds and innovation.
Though Evans, to her credit, did pose challenging questions to Ford and Sununu about the possibility of companies paying internet providers to speed up customers' access to their content and the lack of competing broadband providers faced by many Americans, she failed to disclose the interest that Broadband for America and her own network's corporate parent has in limiting government regulation of broadband access.
Broadband for America has, among its members, major national broadband providers such as Comcast, Cox Communications, and Verizon. Its members list includes the National Cable & Telecommunications Association, which donated $2 million to Broadband for America in 2012.
And CNBC's parent company NBC is owned by the Comcast Corporation, which prides itself on its Comcast Cable division being "the nation's largest video, high-speed Internet and phone provider to residential customers."
Refusing to act on climate change will be bad for business, according to a major recent report assessing the alarming risks of unchecked global warming on the U.S. economy. But while some top business media outlets recognize global warming as a serious issue for their audience, others are still stuck in denial.
On June 23, the Risky Business Project released a comprehensive analysis of the economic impacts of climate change in the United States. The study found that the current path of "business as usual" -- emitting carbon dioxide and other greenhouse gases responsible for driving catastrophic climate change without restrictions -- will reduce labor productivity of outdoor workers by up to three percent, reduce agricultural yields by up to 70 percent in some regions, and cost up to $507 billion in property damages from sea level rise by 2100. The co-chairs are calling for business to rein in their greenhouse gas emissions to prevent an economic crash on the scale of the 2008 financial crisis or worse.
However, some top U.S. business media outlets are denying that climate change is a problem worth addressing -- a disservice to their business viewers, who have a lot to lose. Here are the good, the bad, and the ugly cases of business media covering Risky Business:
In covering the study's findings, Bloomberg Television, a cable and satellite business news channel, featured an interview with former Treasury Secretary Henry Paulson, one of the report's co-chairs and a Republican. Bloomberg's Erik Schatzer began the interview by stating that "the research [on man-made climate change] is overwhelmingly conclusive," and went on to have a rational discussion about solutions to global warming that businesses can take today. Schatzer noted that Bloomberg Television is a child company of the media organization founded by Michael Bloomberg, another co-chair of Risky Business. Paulson suggested that businesses fully disclose their climate change risks, that they invest in "resilience," and that the nation "take out a national insurance policy" to respond to the impacts of climate change, adding that businesses must advocate for government policies that would allow the nation to "avoid the most adverse outcomes."
Paulson elaborated on "the cost of inaction" alongside former Treasury Secretary under President Bill Clinton, Robert Rubin, in a well-done interview on the June 29 edition of CNN's Fareed Zakaria GPS:
Fox Business's coverage of the Risky Business report ridiculed the impacts of climate change and brushed aside the findings as "scare tactics." On the June 24 edition of Cavuto, Fox Business contributor Lauren Simonetti asserted that the organization is using "scare tactics," going on to entirely dismiss the idea of increasing heat-related mortality, saying "what does that mean -- mortality?"
CNBC sought someone to write about "global warming being a hoax" in order to counter a major new report that shows the economic cost of failing to take climate action.
As Republic Report first reported, the cable business channel CNBC reached out to DeSmogBlog, a website that rebuts climate change denial, to ask Alan Carlin, an economist who denies that the majority of recent warming is man-made, to write about "global warming being a hoax." (CNBC apparently mistakenly assumed that Carlin worked with DeSmogBlog because they had profiled him.) Media Matters has confirmed that Cindy Perman, the commentary editor of CNBC.com, sent the following message to DeSmogBlog:
Hi there. Given this new report on the cost of climate change, wanted to extend an invitation to Alan Carlin to write an op-ed for CNBC.com. Can be on the new report or just his general thoughts on global warming being a hoax.
As Media Matters has documented, the majority of CNBC's climate change coverage in 2013 falsely suggested that climate change is not occurring or that it is not mostly man-made, even though 97 percent of climate scientists say it is.
The new report that CNBC referred to in its message to DeSmogBlog is by the Risky Business Project, which found that on the planet's current path, as much as $507 billion worth of coastal properties will be underwater by 2100. Increasingly extreme heat will harm labor productivity, particularly agriculture, transportation and construction. Furthermore, the report found that unchecked climate change will diminish crop yields by more than 10 percent in roughly two decades, place greater demand on power grids and expose more people to the risk of heat- and cold-related death.
While the effects of climate change will not be uniform across the United States, the report notes that global warming already is taking its toll on parts of the nation and will continue to do so, hurting businesses and their bottom line.
This report shows why CNBC's choice to promote climate denial is misguided. Its business viewers would be better served by accurate information about the risks that climate change poses for many businesses.
From the May 22 edition of CNBC's Squawk Box:
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Conservative media are latching on to the climate change denial of Patrick Moore, who has masqueraded as a co-founder of Greenpeace. But Moore has been a spokesman for nuclear power and fossil fuel-intensive industries for more than 20 years, and his denial of climate change -- without any expertise in the matter -- is nothing new.
Reports indicate that CNBC business anchor Maria Bartiromo will soon move to the Fox Business Network to host a weekday market hours program. Judging by Bartiromo's past comments, the host will find a welcome home at Fox.
On November 18, multiple news outlets reported that Bartiromo, currently the anchor of CNBC's Closing Bell, intends to leave her current position to take a job at Fox Business. According to USA Today, Bartiromo will also report for Fox News.
A March 2010 profile of Bartiromo in New York magazine described her as "empathetic to Big Business" and noted the criticism she's taken for being "too cozy" with the people she covers as a journalist. Bartiromo dismissed her critics as jealous: "Anybody who has been very successful is sort of, you know, in the crosshairs."
Indeed, Bartiromo has gone to great lengths to protect the interests of businesses, even advancing borderline conspiracy theories about the Obama administration and government regulatory agencies.
In 2011, Bartiromo repeatedly argued that the National Labor Relations Board (NLRB) should not have intervened when Boeing was accused of anti-labor practices, going so far as to claim that the only reason NLRB filed suit against the company was because Boeing's jobs are non-union. In late 2012 when Citigroup CEO Vikram Pandit unexpectedly resigned, Bartiromo asserted that is was because he was "[g]etting bashed and bashed and bashed again by the President, by the populists." And of course, there is Bartiromo's recent staunch defense of JPMorgan Chase CEO Jamie Dimon, despite the fact that Dimon headed the investment bank when it was involved in allegedly fraudulent deals in the mortgage security market just before the financial crisis.
Bartiromo's soft approach to business interests is exactly what will make the host successful at Fox. The network regularly accuses the federal government of committing "shakedowns" whenever big business interests are held accountable for misconduct, even when there is mounting evidence of wrongdoing. Similar to Bartiromo's assertion that Pandit resigned because of pressure from the Obama administration, Fox Business' Stuart Varney claimed that when Standard & Poor's Devan Sharma stepped down as president in 2011 it was because the Obama administration was exacting revenge for S&P's downgrade of the U.S. credit rating.
Bartiromo's defense of big business is not the only reason she'll fit in at Fox -- she's also well-practiced in false, conservative attacks on President Obama. In October 2012, she suggested that the reason President Obama did not refer to the September 2012 attacks in Benghazi, Libya as "terrorism" -- a well-worn falsehood -- was because he may have been trying to garner support for cuts to military spending. The attacks in Benghazi, of course, have become fodder for Fox to advance baseless conspiracy theories and attacks on the Obama administration and former Secretary of State Hillary Clinton.
Given that Bartiromo's past comments fit into Fox's pro-business anti-government narrative, it is no wonder that the network would take her on board.
(Image via Financial Times via Creative Commons License)
As part of a campaign to pressure CNBC to improve its climate change coverage, mobile billboards are circulating the financial districts of New York City and Chicago on Thursday and Friday. However, rather than airing accurate information on how prominent business leaders use climate science to optimize their risk management strategies, CNBC has continued to air people denying climate change entirely.
The campaign by Media Matters, Forecast the Facts, and Environmental Action was hosted on fuel-efficient trucks to highlight Media Matters' studies finding that the majority of CNBC's relevant coverage casts doubt on the basic scientific consensus that climate change is real and manmade. So far, CNBC has not shown any signs of improvement -- even after a 45,000-signature petition called on CNBC to improve its coverage.
Most recently, CNBC hosted Joe Bastardi, whose arguments for climate change denial have been called "utter nonsense," "very odd" and "simply ignorant" by scientists, to discuss Super Typhoon Haiyan. When another meteorologist noted that rising sea levels have worsened the damage from storms such as Haiyan, Bastardi -- who has claimed contrary to basic physics that carbon dioxide "literally cannot cause global warming" -- predictably dismissed the greenhouse gas connection:
CNBC analyst Michelle Caruso-Cabrera incorrectly argued that there is "next to zero" threat of default at the debt ceiling deadline, accusing White House press secretary Jay Carney of "fear mongering" on the issue.
On the October 1 edition of MSNBC's Morning Joe, Caruso-Cabrera joined a panel discussion of the government shutdown to provide an outlook on its projected effects on financial markets and the greater economy. After downplaying the impact of the shutdown, Caruso-Cabrera addressed comments made by Carney concerning the October 17 debt ceiling deadline. Caruso-Cabrera disregarded the administration's concerns that failing to raise the debt ceiling presented a threat to the American and global financial system, stating:
CARUSO-CABRERA: There is a strong school of thought out there that says if we hit the debt ceiling, that it's not Armageddon, that we don't see skyrocketing interest rates. They keep saying "default on our debt," we just heard Jay Carney say that. The chances of that happening are next to zero because you can prioritize your payments. Defaulting on debt means the U.S. government would not make an interest payment [to] the U.S. Treasury. Highly unlikely, and the other thing is, if you pay that late, if it were even to happen, that is not default. And for investors to suddenly sell U.S. treasuries, because there's going to be a three-day payment late? Highly unlikely, because there aren't many other choices in the world.
Caruso-Cabrera closed the segment by accusing Carney of "fear mongering."
CNBC's Joe Kernen reacted to news from the Indian central bank by forwarding a number of racial stereotypes against Indian-Americans.
On September 20, India's central bank unexpectedly raised interest rates by a quarter percentage point to address concerns over inflation.
Reacting to the news and its effect on exchange rates on the September 20 edition of CNBC's Squawk Box, co-hosts Joe Kernen, Becky Quick, and Andrew Ross Sorkin turned the discussion to the rupee. After Quick noted that she still had rupees left from a recent trip to India, Kernen repeatedly stated the name "Gandhi" -- whose likeness appears on the rupee -- in a stereotypical Indian accent and later asked, "Are they good at 7-11?"
After Quick told Kernen his comments were insulting, Kernen apologized, saying, "I'm sorry, I take it back. I apologize, before I have to."
Here's a full transcript of the exchange:
QUICK: I think I have rupees in my wallet right now.
KERNEN: From your trip?
QUICK: No, I think I honestly do from the last time I was in India.
QUICK: Yeah, I think I might. Hold on.
KERNEN: You got a rupee in your wallet?
QUICK: I think I do.
SORKIN: That sounds a little, um.
KERNEN: You've got to be kidding. There is the rupee chart, just in case you were wondering where the rupee is. The dollar had been soaring, look what happened when we said we were going to keep pumping.
QUICK: I do.
KERNEN: Becky's got a rupee.
SORKIN: A rupee!
QUICK: Here's a fifty and a ten.
SORKIN: How much are those worth, do we know?
QUICK: I don't remember.
SORKIN: Look at Gandhi.
KERNEN: Well, ones worth ten and one's worth fifty, what do you mean?
SORKIN: Gandhi's on the rupee. Look at that.
KERNEN: Gandhi. Gandhi. Now. No, I can't make any jokes about that, I mean do they take -
KERNEN: No I can't do it. I was going to say something.
QUICK: Please don't.
KERNEN: I really can't?
QUICK: No, you can't.
KERNEN: Are they good at 7-11?
KERNEN: Alright, alright, I won't. Let's look at the - people say that all the time. Right? Oh, you're nervous.
SORKIN: They do. They do say that all the time.
KERNEN: They do. They say it all the time.
QUICK: It's insulting.
SORKIN: I've heard that.
KERNEN: It is. Alright, I'm sorry, I take it back. I apologize, before I have to.
UPDATE: In a statement to Mail Online shortly after Media Matters reported on his initial comments, Kernen apologized:
In a comment to Mail Online, Kernen said: 'Last Friday, I made an inappropriate and insensitive remark on Squawk Box. I apologize for any offense it caused.'