Davis Polk Discusses the FSOC Climate Report: 10 Key Takeaways for the Banking Sector
The FSOC Climate Report views “climate-related financial risk as an emerging threat to the financial stability of the United States.” Here are our 10 key takeaways on a critical step in what will be a long and complex journey.
10 Key Takeaways
- U.S. financial regulators are in catch up mode
- In a press call on the Climate Report,1 an unnamed “senior administration official” stated, “Are we behind? Of course we are. This is the starting gun going off for the U.S. regulatory system.”2
- The Climate Report contains 35 recommendations for FSOC’s member agencies. It is a framework