This week, the Department of Labor announced it is proposing a rule that protects workers’ hard-earned life savings by making clear that investment managers can consider climate change and other ESG factors in making investment decisions.Protecting life savings and pensions from climate-related financial risk. This rule is expected to be proposed in the coming months. Consistent with its statutory mandate, the Securities and Exchange Commission (SEC) staff is developing recommendations to the Commission for a mandatory disclosure rule for public issuers that is intended to bring greater clarity to investors about the material risks and opportunities that climate change poses to their investments.The Treasury Department’s Federal Insurance Office has launched a process to address climate-related risks in the insurance sector, with a focus on assessing the availability and affordability of insurance coverage in high-risk areas for traditionally underserved communities.financial regulators developing the capacity and analytical tools to mitigate climate-related financial risks. A forthcoming report from the Financial Stability Oversight Council (FSOC) will kick off the first step in a robust process of U.S.Promoting the resilience of the U.S.financial system to climate-related financial risks. The Administration’s whole-of-government strategy includes six main pillars to achieve the goals of the President’s May 2021 Executive Order on Climate-Related Financial Risks, including several major announcements this week demonstrating concrete actions to protect American families, the federal government, and the economy from climate-related financial risk: The roadmap makes clear that protecting the financial health of American households, deploying clean energy in United States, and building an economy from the bottom-up and the middle-out go hand-in-hand. Climate change poses a systemic risk to our economy and our financial system, and we must take decisive action to mitigate its impacts.īy addressing the costs of the climate crisis head-on, the federal government will safeguard the life savings of workers and families, spur the creation of good-paying, union jobs, and ensure the long-term sustainability of U.S. Climate-related risks hidden in workers’ retirement plans have already cost American retirees billions in lost pension dollars. Extreme weather has cost Americans an additional $600 billion in physical and economic damages over the past five years alone. Both international and domestic supply chains have been disrupted by climate change – whether it’s floods in China and Texas, or wildfires that have burned nearly six million acres of land, supply chains across critical industries including housing, construction, semiconductors, and agriculture have been affected, causing delays and shortages for both consumers and businesses. economy and affected one in three Americans. This year alone, extreme weather has upended the U.S. Today, the Biden-Harris Administration released a comprehensive, government-wide strategy to measure, disclose, manage and mitigate the systemic risks climate change poses to American families, businesses, and the economy – building on actions already taken by the Biden-Harris Administration including just this week: a redesigned National Oceanic and Atmospheric Administration (NOAA) site to better connect Americans to climate explainers, data dashboards, and classroom-ready teaching resources the Department of Labor’s new proposed rule to safeguard life savings and pensions from climate risk as well as the Federal Acquisition Council’s advanced notice of proposed rulemaking to consider greenhouse gas emissions when making procurement decisions. Agency Actions Will Protect Retirement Plans, Homeowners, Consumers, Businesses and Supply Chains, Workers, and the Federal Government from Financial Risks of Climate Change