The Ceres’ 2024 scorecard evaluates the progress of US financial regulators in addressing climate-related risks. The assessment highlights that while there has been significant progress, more work remains to be done. Regulators have made progress in producing research, data, and integrating climate risks into their oversight of regulated entities. For example, the Federal Reserve System, Office of the Comptroller of the Currency, and Federal Deposit Insurance Corporation issued guidance on climate-related financial risk management. The Securities and Exchange Commission (SEC) also finalized a climate disclosure rule requiring public listed companies to report climate-related financial risks. However, despite these efforts, Republican politicians continue to criticize these initiatives, with the House Judiciary Committee accusing Climate Action 100+ of colluding to force out ExxonMobil directors and colliding with federal law. The committee has threatened to introduce legislative reforms to address what it sees as anti-competitive behavior. Despite these challenges, experts agree that there has been a significant evolution in how regulators approach climate-related financial risks, but more work is needed to address the issue.
A report card from US regulators shows substantial strides in addressing climate-related risks.
