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Executive Order on Climate-Related Financial Risk.

Country/Territory
United States of America
Document type
Regulation
Date
2021
Source
FAO, FAOLEX
Subject
Environment gen.
Keyword
Business/industry/corporations Climate change Data collection/reporting Policy/planning Risk assessment/management Sustainable development Financing Social protection
Geographical area
Americas, Arctic, East Pacific, North America, North Atlantic
Abstract

The executive order declares U.S. has to deal with climate-related physical risk, transition risk and failure of financial institutions to appropriately and adequately account for and measure these risks causing an additional threaten to the competitiveness of U.S. companies and markets. It is therefore the aim of the policy to advance consistent, clear, intelligible, comparable, and accurate disclosure of climate-related financial risk (consistent with Executive Order 13707 of September 15, 2015 (Using Behavioral Science Insights to Better Serve the American People)), including both physical and transition risks; act to mitigate that risk and its drivers, while accounting for and addressing disparate impacts on disadvantaged communities and communities of color (consistent with Executive Order 13985 of January 20, 2021 (Advancing Racial Equity and Support for Underserved Communities Through the Federal Government)) and spurring the creation of well-paying jobs; and achieve the net-zero target emissions economy by no later than 2050.

Full text
English