The Financial Stability Oversight Council today said that climate change represents an “emerging threat” to U.S. financial stability, and approved a report containing more than 30 specific recommendations that its member agencies can take to identify and address climate-related financial risk.
For banks, understanding what constitutes ESG and most prominent global frameworks will be time well invested to raise awareness and prepare for what will follow.
As the Financial Stability Board looks to refresh its work plan after COVID-19, FSB Chairman Randal Quarles today said it would continue to focus on non-bank financial intermediation, along with other emerging issues that pose threats to financial stability, including climate-related financial risk, crypto assets and stablecoins.
The White House issued a 40-page report yesterday titled, “A Roadmap to Build a Climate-Resilient Economy,” laying out its view that the health of the U.S. economy is intrinsically linked to climate change and that climate change poses a systemic risk to both the economy and the financial system.
The Financial Stability Board-sponsored Task Force on Climate-related Financial Disclosure issued an update to its 2017 recommendations of disclosure of climate-related financial information.
The Federal Reserve is working to develop a scenario analysis through which banks can model the potential risks associated with climate change and assess their ability to manage those risks, Federal Reserve Governor Lael Brainard said at an industry event today.
As the SEC considers comments from its recent request for information on climate change disclosures, the Office of Corporation Finance has published a model comment letter consisting of comments that recently have been sent to various SEC registrants related to climate change.
Climate change is a big issue, but compliance officers are adept at issue management. Start with root cause analysis.
On the latest episode the ABA Banking Journal Podcast, Berkshire Bank President and CEO Nitin Mhatre discusss Berkshire Bank’s “BEST Community Comeback,” a new $5 billion ESG-focused initiative at the Massachusetts-based midsize community bank.
Some bank leaders believe that focusing on climate can help banks gain relevance, especially with younger customers.