Casten Responds to FSOC’s Climate Risk Report
Washington, D.C. — Congressman Sean Casten (D-IL) released the following statement after the Financial Stability Oversight Council (FSOC) released its Report on Climate-Related Financial Risk as part of a larger effort by the Biden Administration to address climate change through a whole of government approach. The FSOC report recognizes climate change as an emerging threat to the financial system and recommends financial regulators examine and take new actions on climate change data, disclosure and scenario analysis.
"As we recover from the pandemic, we cannot afford to ignore the next threat to our economy–especially one as existential as the climate crisis. The physical damage and cost generated by wildfires, flooding, droughts and other natural disasters and extreme weather events are occurring at unprecedented frequency, in addition to the transition risks and market volatility from financial institutions offloading carbon-intensive assets put pressure on our economy's financial stability. Secretary Yellen has made clear she recognizes the risk that climate change poses to America's financial system, issuing the FSOC report is another demonstration of that. The report outlines the emerging and increasing threats climate change poses and encourages financial regulators to incorporate climate-related risks into risk management practices and supervisory expectations for regulated entities. I'm pleased to see this action but this cannot be the end of the road, more needs to be done."\
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