Money Makers Mentor

Federal Reserve Governor outlines Climate Change Combat Policies

Federal Reserve Governor Lael Brainard outlined climate change combat policies before the 2021 Institute of International Finance U.S. Climate Finance Summit. Brainard warned that financial institutions that do not put in place frameworks to measure, monitor, and manage climate-related risks could face outsized losses.

“There is growing evidence that extreme weather events related to climate change are on the rise,” Brainard said. “One study finds that natural disasters have resulted in more than $5.2 trillion in losses globally since 1980, more than 70% of which was not insured.”

Financial institutions can face the wrath of climate change through ‘physical risk’ and ‘transitional risk’ Brainard explained. “Physical risks” refer to damages caused by an increase in the frequency or s…

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