SEC Ranked Top US Regulator on Climate Risk

US sustainability-focused non-profit Ceres has published its 2022 Climate Risk Scorecard, which assesses nine federal financial agencies on their actions to protect financial institutions, capital markets, and communities from climate-related financial risks. The scorecard consists of six categories, including producing research and data on climate change, the appointment of senior staff to focus on climate change and improving climate-related disclosures. Agency scores are based on more than 230 public actions the regulators have already implemented to address climate-related financial risks. Regulators assessed in the scorecard include the Securites and Exchange Commission (SEC), Federal Reserve Bank (The Fed) and the US Department of the Treasury. According to the scorecard, the SEC was by far the best performing financial agency, making notable progress or completing actions in five of the six categories, only falling short in the assessing climate-risks for “financially vulnerable communities”. In this category, three of the nine agencies made no progress and only one, Federal Housing Finance Agency (FHFA), made notable progress. Only the SEC made notable progress and had actions completed in improving climate-related disclosures and including climate risk in supervision and regulation. The worst performing agency was the National Credit Union Administration (NCUA).  

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