U.S. regulatory panel to unveil blueprint for tackling financial climate risks -Breaking
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By Pete Schroeder
WASHINGTON, (Reuters) – A high-ranking U.S. regulator panel will present recommendations on Thursday for ensuring that the financial system is able to withstand climate change risks. This development could lead to new regulations and tighter supervision on Wall Street.
The Financial Stability Oversight Council is comprised of heads of major financial institutions and is presided over by Treasury Secretary Janet Yellen. This report is part President Joe Biden’s plans to tackle climate change aggressively and ahead of his trip in Scotland to the United Nations climate summit.
Todd Phillips from the Center for American Progress was the director of financial regulations. He said that it is the first time all of the banks and financial regulators have come out together and discussed what they could do to combat climate change.
According to risk specialists, climate change can cause financial chaos because of physical risks such as rising sea level and policies that reduce global warming.
The Commodity Futures Trading Commission’s 2020 Report cited data that estimated global wealth linked to fossil fuel assets at $1 trillion to $4 trillion.
Investors are pushing for more information about the climate-related risks facing companies, with a record $51billion pouring into U.S. Sustainable Funds in 2020.
The Republican president Donald Trump did virtually nothing to help address climate risks. Biden (a Democrat) has stated that he would like every agency in government to incorporate climate risk into its agenda. Last week, the White House released its own report detailing how financial institutions are responding.
According to Reuters, the Securities and Exchange Commission is already drafting regulations for how companies must disclose climate risk risks. Meanwhile, the Federal Reserve began pressing banks for information on the impact of climate change on their financial statements.
Progressives argue that more must be done.
Phillips explained that Phillips thought the document will provide a guideline for moving forward.
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