ALEXANDRIA, Va.–NCUA said it is “reviewing” an executive order from President Biden that directs federal agencies to launch or expand efforts to analyze and lessen economic risks stemming from climate change.
A spokesperson for NCUA told CUToday.info that the review is currently under way within the agency.
“However, the order does not appear to direct any specific action for the agency,” the spokesperson said. “Instead, the order directs the Secretary of the Treasury to engage with members of the Financial Stability Oversight Council (FSOC), to consider several actions, including an assessment of the financial risks climate change poses.”
NCUA went on to note that Chairman Todd Harper has stated previously that FSOC should focus on the financial risks related to climate change and that each agency needs to manage climate risk within their regulatory and supervisory frameworks.
“For the NCUA that means measuring, monitoring, and mitigating such risks to promote the safety and soundness of credit unions, protect consumers, and safeguard the Share Insurance Fund,” the spokesperson said. “These actions will ensure that credit unions remain resilient against all material risks, including the financial risks posed by climate change.”
The Order
As CUToday.info previously reported, https://www.cutoday.info/Fresh-Today/Biden-Signs-Executive-Order-Requiring-Agencies-to-Address-Climate-Change
the order calls for:
- Development of a strategy within 120 days to "identify and disclose climate-related financial risk to government programs, assets, and liabilities." It would identify "public and private financing" needed to reach net-zero U.S. emissions by 2050.
- The Treasury secretary, as head of the multi-agency Financial Stability Oversight Council, to specifically analyze risks to financial system stability. That effort would bring ideas within 180 days to reduce risks, including agency steps to improve risk disclosures and stitch climate-related financial risks into regulation and supervision.
- The Labor Department to explore how to protect pensions and assess how the Federal Retirement Thrift Investment Board weighs climate risk.
- Efforts to weave climate risk consideration into federal lending and procurement. Those include potential new requirements on federal suppliers to disclose emissions and financial risks, and ensure that agency procurement practices reduce them.