As the low-carbon transition accelerates, more companies are considering climate change in their operations and decision-making. Part of this shift is due to regulation. In many jurisdictions, governments are requiring businesses to disclose climate-related information in their periodic filings. Climate-related disclosures inform companies’ key stakeholders of how they’re approaching the challenges and opportunities related to […]
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US Establishes Climate Risk Group, Climate Risks Ignored in Disclosures, and More
The top five climate risk stories this week. US financial regulators establish climate risk group The Financial Stability Oversight Council (FSOC), a panel of federal regulators charged with monitoring the US financial system, announced the formation of a committee dedicated to exploring climate threats on Tuesday. The Climate-related Financial Risk Advisory Committee (CFRAC) will collect […]
Climate Risk Regulation Rundown: September 2022
What happened in climate-related financial regulation last month, and what’s coming up. Americas The Federal Reserve will conduct a “pilot climate scenario analysis exercise” of six Wall Street banks in early 2023. Bank of America, Citigroup, Goldman Sachs, JP Morgan Chase, Morgan Stanley, and Wells Fargo will all take part in the exercise. In a […]
The Investment Case for Climate Opportunities
While asset managers are in the business of growing their clients’ wealth, they’re also increasingly being asked to support climate goals. On paper these two objectives may appear at odds with one another, but in practice there’s plenty of overlap between them. Investing in climate opportunities can yield healthy financial returns and power the low-carbon […]
5 Key Considerations for Retail Companies to Enhance Climate Action
Retail is one the most important contributors to economic growth and development. The sector contributed approximately USD$20trn to the global economy in 2020 and is expected to grow to almost USD$30trn by 2025. The sheer volume of goods and products manufactured, stored, and distributed across retail supply chains also means that the sector will play […]
US Banks Take Part in Climate Scenario Analysis, UK Pension Funds to Adopt Alignment Metrics, and More
The top five climate risk stories this week Six US banks to take part in Federal Reserve climate scenario analysis Wall Street banks will undertake a “pilot climate scenario analysis exercise” in early 2023, the Federal Reserve announced Thursday. Bank of America, Citigroup, Goldman Sachs, JP Morgan Chase, Morgan Stanley, and Wells Fargo will all […]
How Financial Firms Can Navigate Climate Tipping Points
Climate risks will not obey a steady and predictable pattern as the world heats up. Beyond certain temperature thresholds, abrupt shifts in the climate system could occur with far-reaching consequences for the planet, the global economy, and human civilization itself. These “climate tipping points” (CTPs) complicate the climate risk management calculus. As the relationship between […]
GFANZ May Splinter Over Legal Risks, NYC Finance Chief Rebukes BlackRock, and More
The top five climate risk stories this week GFANZ may splinter over legal risks US banks may walk away from the world’s largest climate finance alliance over its toughened decarbonization commitments. JP Morgan, Bank of America, and Morgan Stanley are among the Wall Street giants threatening to leave the Glasgow Financial Alliance for Net Zero […]
US Hires Chief Climate Risk Officer, Financial Institutions Ramp up Climate Hires, and More
The top five climate risk stories this week US regulator hires chief climate risk officer US bank watchdog the Office of the Comptroller of the Currency (OCC) appointed its first chief climate risk officer, who will be responsible for addressing the threat of global warming to the federal banking system. On Monday, the agency announced […]
How to Kick-Start a Climate Action Plan
Companies big and small are thinking about producing climate action plans. Some are under pressure to do so from regulators or shareholders, while others are being encouraged by large companies in their value chains. Many more businesses may be driven by their values or by more prosaic concerns, like protecting themselves from climate-related financial risks. […]