As damage from severe weather events becomes more frequent, insurance companies are taking the effects of climate change into account as part of their risk assessment.

“We do look at extreme weather events and climate-related issues as a growing concern from a credit perspective,” said Steve Dreyer, managing director of U.S. utilities & infrastructure ratings at Standard & Poor’s Rating Services, on a recent conference call for business leaders hosted by Business Forward.

Dreyer also noted that state government credit ratings are vulnerable, but have not yet been impacted by climate because the U.S. federal government has provided aid when needed.

“As we look at state governments, we do not assume that aid is always going to be there, and that there will be a willingness and ability to provide it,” he said.

Dreyer was joined on the call by Dan Utech, special assistant to the President for energy & climate change. Utech highlighted the EPA’s new standards to reduce carbon emissions at power plants as a step toward combatting the effects of climate change.

To draft a proposal that would be feasible and cost-efficient for states, the EPA met with a range of stakeholders, including local governments and businesses.

“I think that a lot of that input that EPA got over the course of that process is reflected in the proposal,” Utech said.

Business leaders are again encouraged to provide input as the EPA works to finalize the standard by next June.

“We’re looking for a lot of feedback from everybody,” Utech said.

Click here to submit a comment on the EPA’s new power plant regulations and listen to the full conversation below.