Company: BRK-A
Filing Date: 2025-03-25
Form Type: PX14A6G
Source: 0001214659-25-004756
Chunk: 5

Company: BERKSHIRE HATHAWAY INC
Filing Date: 2025-03-25
Form: PX14A6G
Chunk 5
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 vulnerable to climate change may provide risk-mitigation in the short-term, it has to potential to negatively impact
business as climate-related damage becomes increasingly widespread. Further, as insurance becomes costlier and less available, this trend
could negatively impact the mortgage market, with ripple effects into the municipal bond market into which Berkshire invests
insurance proceeds.

In 2024, the United States experienced 27 climate-related weather events
with costs of over $1 billion – the most in any year apart from 2023, which saw 28 massive storms. Climate change,
driven in part by continued investments in new fossil fuel projects and infrastructure, is causing increasingly severe, frequent, and
hard-to-predict weather events in locations across the U.S. For Berkshire, these trends are resulting in catastrophe losses
and a shrinking private insurance market, which makes addressing climate risk imperative. Continued investment in new fossil fuel projects
and infrastructure moves Berkshire in the wrong direction by increasing company risk and systemic market risk that will negatively impact
investors.

The California Department of Insurance, in a recent Climate Risk Analysis,
has recognized growing risk related to fossil fuel and other high carbon investments underscoring that “climate change is a systemic
risk, and investments that reduce short- and long-term climate change impacts will promote a more sustainable insurance market over the
long-term.” Other state regulators have called for insurers to consider climate-related factors. In 2021, the Connecticut
General Assembly passed legislation requiring the Connecticut Insurance Commissioner to consider an insurer’s approach to climate
risk in its oversight. In 2021, the New York State Department of Financial Services also issued guidance for insurers to
incorporate climate risk into financial risk management.

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https://www.guard.com/ca-mitigation/

https://www.reinsurancene.ws/berkshire-hathaway-absent-bermuda-collateralised-reinsurers-dominate-florida-citizens-renewal/

https://climateandcommunity.org/research/insurance-financial-stability/

https://www.climate.gov/news-features/blogs/beyond-data/2024-active-year-us-billion-dollar-weather-and-climate-disasters

https://www.ncei.noaa.gov/access/billions/state-summary/US

https://www.insurance.ca.gov/01-consumers/180-climate-change/upload/California-Sustainable-Insurance-Roadmap-Progress-Report-June-2022.pdf,
p.2

https://portal.ct.gov/-/media