Financial Council Opens Door To Scrutiny Of ‘Non-Bank’ Firms’ Climate Risk

The inter-agency Financial Stability Oversight Council (FSOC) is reversing Trump-era guidance that made it harder to designate insurance companies, investment firms and other “non-bank” institutions “systemically important,” opening the door to stronger federal oversight of firms with high climate-related risks. “Many large non-bank financial institutions are failing to adequately prepare for the rapid decarbonization of the U.S. economy and intensification of physical and transition climate impacts,” argues Steven Rothstein, managing director of the Accelerator for Sustainable Capital Markets at the...