Ceres Applauds and Welcomes the OCC's Recent Call for Public Comment on Their Proposed "Principles for Climate-Related Financial Risk Management for Large Banks.”
December 17, 2021 /3BL Media/ -
“The Office of the Comptroller of the Currency (OCC) is taking important steps to support the stability of banks to address the rapidly growing climate risk. As the OCC makes clear, these principles provide a vital initial step towards urgently needed supervisory guidance to protect the safety and soundness of banks, our broader financial markets and our nation,” said Steven M. Rothstein, Managing Director of the Ceres Accelerator for Sustainable Capital Markets at Ceres.
We agree with the OCC that "[b]anks are likely to be affected by both the physical risks and transition risks associated with climate change (referred to in these draft principles as climate-related financial risks)." This risk is highlighted in these recent Ceres reports:
- Financing a Net Zero Economy: The Consequences of Physical Climate Risk for Banks
- Financing a Net-Zero Economy: Measuring and Addressing Climate Risk for Banks
We also agree with the OCC that "[w]eaknesses in how banks identify, measure, monitor, and control the potential physical and transition risks associated with a changing climate could adversely affect a bank’s safety and soundness, as well as the overall financial system," and that "[a]dverse effects could include potentially disproportionate impact on the financially vulnerable, including low- to moderate-income (LMI) and other disadvantaged households and communities," and "[m]any banks are considering these risks and would benefit from additional guidance as they develop capabilities, deploy resources, and make necessary investments to address climate-related financial risks."
Ceres is a nonprofit organization working with the most influential capital market leaders to solve the world’s greatest sustainability challenges. The Ceres Accelerator for Sustainable Capital Markets is a center within Ceres that aims to transform the practices and policies that govern capital markets in order to reduce the worst financial impacts of the climate crisis. It spurs action on climate change as a systemic financial risk—driving the large-scale behavior and systems change needed to achieve a net zero emissions economy. For more information, visit ceres.org and ceres.org/accelerator and follow @CeresNews.
Media Contact: Reginald Zimmerman, firstname.lastname@example.org, 617-247-0700 ext. 136