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Schatz Statement On Biden Executive Action On Climate Risk

WASHINGTON – U.S. Senator Brian Schatz (D-Hawai‘i) today released the following statement on a new Executive Order from President Joe Biden that will take steps to mitigate the risks climate change poses to our financial system, economy, and federal budget. Schatz has led calls for action on climate risk and has authored legislation directing the Federal Reserve to conduct climate stress tests on large financial institutions.

“Risk is risk, and we do not have the luxury of ignoring it. The Biden Administration recognizes that climate change poses systemic risks to our financial sector and economy, and they’re taking action. This Executive Order is an unprecedented step towards integrating climate into our economic policymaking. I hope our financial regulators take the order to heart, and work with Secretary Yellen to fully incorporate climate into their financial stability, supervisory, and monetary policy mandates. Our regulators’ job is to ensure a stable and efficient financial system, and that means managing the risk of a climate-driven financial crisis.”