Very interesting to see the U.S. Federal Reserve highlight environmental/climate risks to the global economy and economic stability as a factor in its analysis, especially as it relates to disclosure. Certainly solidifies the notion that ESG-related reporting and disclosures are here to stay. Will the Fed's interest in this topic also be picked up by the SEC in rulemaking and other policy positions? Public companies will be well advised to keep this on the agenda for board discussions going forward.
“Increased transparency through improved measurement and more standardized disclosures will be crucial,” Brainard said. “It is vitally important to move from the recognition that climate change poses significant financial stability risks to the stage where the quantitative implications of those risks are appropriately assessed and addressed.”
unknownx500
