Systemic risks have the potential to destabilize capital markets and lead to serious negative consequences for financial institutions and the broader economy. Climate change is indisputably a systemic risk. Climate is the largest, most all-encompassing system in the world. Wide-ranging physical impacts now becoming evident, combined with expected transitions to a net-zero carbon economy and other socio-economic ripple effects, are likely to manifest in both cumulative and unexpected ways and present clear systemic risks to U.S. financial markets — and the broader economy.
A recently-published Ceres report combines a clear explanation of the case for climate change as a systemic risk with a call to action to US regulators. It is ground-breaking in breadth, with specific recommendations to eight federal-level regulators and state insurance regulators. In July, the Ceres Accelerator for Sustainable Markets coordinated letters to the regulators from a broad-based and bipartisan collection of businesses, former regulators, former elected officials, nonprofit leaders and 40 investors managing a combined $1 trillion in assets. The letters were a next step in a multi-pronged effort to spur regulators to act on climate change, catching up to their counterparts in Europe and elsewhere.
Join CFA Society of Boston on September 17th from 1:00 – 2:30 pm for a conversation with Steven Rothstein, the Managing Director of the Ceres Accelerator for Sustainable Capital Markets, and report lead author Veena Ramani about “Addressing Climate as a Systemic Risk: A call to action for U.S. financial regulators“. Our conversation will provide a concise description of the systemic risk of climate change, followed by a discussion of the recommendations in the context of the specific roles of the different regulators, and closing with actions investors can take.
- Steven Rothstein, Managing Director of the Ceres Accelerator for Sustainable Capital Markets
- Veena Ramani, Senior Program Director, Capital Markets Systems, Ceres (Lead Author)
- Michael Greis, Principal, Riverbend Advisors (CFA Boston Host & Moderator)