Categories: Markets

Brainard Says Financial Firms Should Prepare Now For Climate Risks

Uncertainty about the impact of climate change should not deter the incorporation of these climate risks into the planning and supervision of banks“Federal Reserve Governor Lael Brainard said Thursday, Reuters reported.

Additional comments:

“Financial companies should prepare now for the climate risks“.

“They are being studied tools such as scenario analysis for possible use in monitoring climate risks. “

The physical risk of weather events can be difficult to assessBut short-term policy changes, for example, could lead to rapid changes in asset prices. “

“The system would ultimately need standardized, reliable and mandatory disclosures on how companies are prepared to face climate risks. “