CONTACT: Barbara Hagenbaugh
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bhagenbaugh@fsforum.com
Global coordination, recognition of unique business models essential
Washington, D.C. – Financial Services Forum President and CEO Kevin Fromer issued the following statement today following the release of the Financial Stability Oversight Council’s (FSOC) report on climate-related financial risks and financial stability:
“The nation’s largest banks are committed to working with regulators in the United States and around the globe to achieve the shared goal of assessing and accounting for all risks, including those related to climate change and the transition to a low-carbon economy. We welcome the report from the FSOC and look forward to reviewing it closely.
“In addition to their commitments to sustainable finance and carbon neutrality, the nation’s largest banks have taken substantial steps to identify, assess, and manage climate-related financial risk. Climate change poses unique challenges to each institution, and Forum members deploy a number of risk-management tools — from scenario analysis to risk identification — to assess their distinct exposures and vulnerabilities resulting from climate change.
“Addressing climate change also requires thoughtful policies across all industries. Global coordination is essential as regulators around the world consider priorities for climate risk management, including data collection and standardization, disclosures, and support for innovation. At the same time, it is imperative that financial regulators recognize that every bank is different with its own unique business model and customer base, requiring an individualized approach to climate risk management. We look forward to continued collaboration on these matters.”
Background
U.S. Global Systemically Important Banks (GSIBs) recognize that climate change poses risks to the world’s economy and financial system, as well as offers opportunities to foster innovation and mobilize capital. U.S. GSIBs are undertaking significant efforts to assess and manage climate-related risks and have announced support of the Paris Agreement goals of limiting the increase in global average temperature to well below 2 degrees Celsius above preindustrial levels. Firms are analyzing and developing Paris-alignment strategies to support their clients and the global economy to meet this goal.
Learn more about what Forum members are doing to assess and manage risks associated with climate change and their related commitments here and in our blog, First Things First: Climate, Risk Management, and Capital for Large Banks.
The Financial Services Forum is an economic policy and advocacy organization whose members are the chief executive officers of the eight largest and most diversified financial institutions headquartered in the United States. Forum member institutions are a leading source of lending and investment in the United States and serve millions of consumers, businesses, investors, and communities throughout the country. The Forum promotes policies that support savings and investment, deep and liquid capital markets, financial inclusion, a competitive global marketplace, and a sound financial system.
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