Biden administration takes action to protect Americans from climate-related financial risks


Statement by Nat Keohane, EDF Senior Vice President for Climate – May 20

May 20, 2021

Sharyn Stein, 202-905-5718, [email protected]

“Climate change poses serious risks to our financial system. Growing wildfires, droughts and inclement weather threaten the stability of mortgages, insurance policies, and small business and farm loans that underpin the U.S. economy. Unprecedented warming is jeopardizing everything from our pensions to our municipal bonds. It is a danger to businesses, investors and the American public.

“President Biden executive order today will lift the veil on these risks, often hidden in financial systems. It creates a government-wide strategy to quantify the risks posed by climate change to public and private financial assets. This will allow agencies from the Treasury Department to the Department of Labor to the Federal Insurance Office to begin determining ways to minimize climate-related financial risks.

“We need to do more. We need mandatory disclosure of climate-related risks from companies and financial institutions, for example. Today’s investors don’t have the crucial information they need to make the best choices. We must also put a price on carbon, because the Commodity Futures Trading Commission recommended last September.

“The costliest thing we can do in the face of the climate crisis is to ignore its risks. Today’s implementing decree is a big step forward in raising awareness of the existing financial risks of climate change, forecasting future risks and unlocking a political solution that will help us take action. “

– Nat Keohane, Senior Vice President for Climate, Environmental Defense Fund

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One of the world’s leading international non-profit organizations, Environmental defense fund (edf.org) creates transformational solutions to the most serious environmental problems. To do this, EDF combines science, economics, law and innovative partnerships with the private sector. With more than 2.5 million members and offices in the United States, China, Mexico, Indonesia and the European Union, EDF scientists, economists, lawyers and policy experts are working in 28 countries to make it happen our solutions. Connect with us on Twitter @EnvDefenseFund





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