White House Issues Roadmap to Address Climate-Related Financial Risk: The Report Presents the Biden Administration’s Strategy for Addressing Climate-Related Financial Risk Across the U.S. Economy and Highlights Recent and Forthcoming Climate-Related Regulatory and Other Federal Government Initiatives

Sullivan & Cromwell LLP - October 18, 2021
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On October 14, 2021, the White House issued a report entitled “A Roadmap to Build a Climate-resilient Economy.” The 40-page report was mandated by President Biden’s May 2021 executive order on “Climate-Related Financial Risk” and presents the Administration’s “roadmap for measuring, disclosing, managing and mitigating climate-related financial risk across the economy,” while “catalyzing public and private investment to seize the opportunity of a net-zero, clean energy future.” The report outlines the Biden Administration’s “whole-of-government” implementation strategy to address climate-related financial risk and indicates that financial regulators and the federal government will play an increasingly important role in the implementation of the Administration’s climate-risk strategy. As the SEC, the financial regulators and other governmental agencies become increasingly focused on climate-related disclosures and financial risk management, companies, particularly SEC registrants, financial institutions (which will have responsibilities for their customers), and federal government contractors, should consider evaluating their existing approach to climate risks and opportunities and prepare to adapt to major climate-related regulatory and market developments in the coming years.

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