WASHINGTON (Reuters) – Federal Reserve Governor Lael Brainard said Monday the U.S. had fallen behind its peer central banks in building the risks of climate change into the supervision of banks, highlighting a potentially core priority should she be promoted to vice chair of supervision at the Fed or even to the chair’s spot.

Brainard spoke at the National Association for Business Economics Conference. She stated, “Many of our biggest banks that are international active are already being supervised in other jurisdictions for measuring, monitoring and managing financial climate risks.” The U.S. is behind the curve and must catch up. Climate change has significant consequences for both asset prices, as well as financial systems.