Fed's Quarles seeks global coordination on climate-related financial risk
Reuters
Published Jul 11, 2021 09:24AM ET
(Reuters) - Global financial regulators need a joint effort to address climate-related financial risks, the chair of the Financial Stability Board said on Sunday, urging the body tasked with setting disclosure standards to "press forward as quickly as possible."
Randal Quarles, who is also the Federal Reserve's Vice Chair for Supervision, also called for an international effort to develop comprehensive and comparable data on climate-related risks, including better information on the dangers of extreme weather events to business, bank and household balance sheets.
"Globally consistent, comparable, and reliable disclosures, as well as a broader set of high-quality, relevant data, together, can provide the basis to assess climate-related financial risks and the impact on financial stability," Quarles said in remarks prepared for delivery to the Venice International Conference on Climate Change.
Among efforts the FSB is spearheading, Quarles said, is coordinating work with global central banks on the financial metrics useful for scenario analyses, an approach to assessing bank risk to climate stressors underway in some countries but that faces political resistance in the United States.
The FSB, which coordinates financial rules for the G20 group of nations, earlier this week released a "climate roadmap" to help get international regulators on the same page as far as goals and milestones toward better managing climate-related risks.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.