Dear John,
It’s no secret that climate change has an impact on the economy, from billion-dollar climate disasters to unexpected supply chain disruptions, so what are our regulators doing to protect our financial system from these catastrophic risks?
For the third year, the Ceres Accelerator for Sustainable Capital Markets has released the Climate Risk Scorecard, which assesses 10 federal financial regulators on the action steps they have taken to protect U.S. capital markets, financial institutions, and communities from the effects of climate risk. |
| The Scorecard provides an in depth analysis of actions taken by each regulator—including the Federal Reserve Bank, Federal Housing Finance Agency, Securities and Exchange Commission, and more—to improve climate-related research, integration of climate risk in supervision, and assessment of climate impacts on financially vulnerable communities. |
Among its findings, the report concludes:
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Nine regulators have publicly affirmed climate as a systemic risk to the financial system.
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Six of 10 regulators have robust internal climate-related capacities, but this year has seen additional progress from those still developing their staffing and technical expertise.
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Minimal progress was made among regulators with authority that encompasses consideration of financially vulnerable communities.
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| The American public needs federal financial regulators to take our future—and our financial security—seriously. Despite impressive progress made since the 2022 Scorecard, a great deal remains to be done to strengthen and protect our economy. |
