Legislation that would require corporations to report their greenhouse gas emissions has been reintroduced in the California State Senate, with the proposed law modeled after an ABA-opposed bill that was narrowly defeated by state lawmakers last year.
The American Legislative Exchange Council’s board last week rejected a proposed model bill that would have required states to stop doing business with companies considered to be boycotting fossil fuels and other related industries.
The Federal Reserve this week provided additional details on how its upcoming pilot climate scenario analysis exercise will be conducted and the information on risk management practices that will be gathered from the program.
Barring congressional action, it would be inappropriate for the Federal Reserve to use monetary policy or supervisory tools to promote a greener economy or achieve other climate-based goals, Fed Chairman Jerome Powell said this week.
The New York State Department of Financial Services has proposed new guidance for banking and mortgage-lending institutions “to help them manage safety and soundness risks related to climate change,” the agency said in a statement.
Economic uncertainty and rising borrowing costs have increased risk in both the residential and commercial real estate sectors, which could increase risks to U.S. financial stability, the Financial Stability Oversight Council warned in its annual report.
Federal efforts to gauge how well large banks are prepared to handle climate change risks will differ from traditional stress tests in that they are not about capital, representatives from the Office of the Comptroller of the Currency and Federal Housing Finance Agency said Tuesday.
Reporting component of the SEC proposal would place “undue burden” on farmers who provide raw products to the value chain, opponents say.
Acknowledging that the FDIC does not currently incorporate the financial risk of climate change into its supervisory program, Acting Chairman Martin Gruenberg said today the agency needs to “clearly communicate” what its intentions are as it begins to explore those risks.
The current environment of swiftly rising interest rates, combined with tighter financial conditions, greater market volatility and slowing global growth “could test many of the long-standing and growing vulnerabilities in the global financial system,” the Financial Stability Board said.