Some items on our site have recently moved. Visit our News Hub for selected articles, special reports, podcasts and other resources.
US banks' climate change disclosures should be standardized over long run, Fed's Powell says
23 Feb 2021 12:00 am by Neil Roland
US banks’ disclosures about the impact of climate change on their finances should be required over time to be uniform, Federal Reserve Chairman Jerome Powell said.
“Financial institutions everywhere, particularly large and medium-sized, are working hard on this,” he told the Senate Banking Committee today. “But in the long run, we have to be going in the direction of more standardization.”
The comment seems to align Powell with Democratic Fed Governor Lael Brainard, who has been the leading advocate at the central bank for addressing global-warming risks.
Disclosures that are “standardized, reliable and mandatory” could improve access to business data needed by regulators to properly manage risks, she said this month.
Powell said a key question more immediately is whether disclosures should vary by jurisdiction and institution.
The Task Force on Climate-Related Financial Disclosures, headed by former New York City mayor Mike Bloomberg, is “struggling” with this question, he said.
“It’s appropriate to allow some of that difference to persist for now,” Powell said. “But in the long run, clearly we ought to be going to a kind of template or standardized.”
The private-sector task force is part of the Basel-based Financial Stability Board.
26 Feb 2021 12:00 am by Giulia BediniEU lawmakers’ hopes to significantly expand the bloc’s proposed climate law have been doused by national governments.
18 Feb 2021 12:00 am by Neil RolandThe US SEC plans to develop disclosure regimes for companies facing climate change that could impact their finances.
US Fed official with global climate experience tapped to head new group as central bank steps up international engagement26 Jan 2021 12:00 am by Neil RolandUS Federal Reserve Official Kevin Stiroh has been named chief of a new group that will study the impact of global warming on financial institutions and markets.