Fed Asks the Six Largest Banks to Disclose How They Are Preparing for Climate Risks

The six largest banks in the United States have until July to show the impact that Climate change could have on their operations. The Federal Reserve recently announced this as part of the details for a pilot program.

Source: TEDx Talks/Youtube

The institutions must now show the anticipated impact that events such as floods, wildfires, hurricanes, heat waves, and droughts could have on their loan portfolios and commercial real estate holdings, CNBC News reported.

“The Fed has narrow, but important, responsibilities regarding climate-related financial risks – to ensure that banks understand and manage their material risks, including the financial risks from Climate change,” Fed Vice Chair for Supervision Michael S. Barr said. “The exercise we are launching today will advance the ability of supervisors and banks to analyze and manage emerging climate-related financial risks.”

The climate scenario tests are considered separate from typical mandated bank stress tests, which examine readiness in case of financial and economic crises.

The analysis takes a look at both the physical risk perspective (the harm to people and property from unexpected climate-related events) as well as the transition risks (the costs of moving to a zero-emissions economy by 2050.

Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Wells Fargo all must participate and submit by July 31. A summary is expected to be released to the public by the end of the year.

Cutting your carbon footprint is the surest way to minimize the amount of warming greenhouse gas emissions entering the atmosphere. While you can do many little things like shutting off lights when you leave your house, choosing to walk instead of driving, and switching over to energy-efficient appliances – there is one simple action that often goes overlooked that has the highest positive impact: eating plant-based.

Animal agriculture is responsible for more greenhouse gas emissions than the entire transportation sector combined. In addition, this industry occupies 45 percent of arable land, uses 23 percent of global freshwater resources, and is responsible for rampant deforestation, water drought, and air Pollution. By shifting away from meat and dairy products and choosing plant-based alternatives instead, you can help lower this rate of destruction. In just one year of eating plant-based, you can halve your carbon footprint – that’s pretty powerful!

Planet B Not Found Sweatshirt by Tiny Rescue: Climate Collection

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Easy Ways to Help the Planet:

• Eat Less Meat: Download Food Monster, the largest plant-based Recipe app on the App Store, to help reduce your environmental footprint, save animals and get healthy. You can also buy a hard or soft copy of our favorite vegan cookbooks.
• Reduce Your Fast Fashion Footprint: Take initiative by standing up against fast fashion Pollution and supporting sustainable and circular brands like Tiny Rescue that raise awareness around important issues through recycled zero-waste clothing designed to be returned and remade over and over again.
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• Do What You Can: Reduce waste, plant trees, eat local, travel responsibly, reuse stuff, say no to single-use plastics, recycle, vote smart, switch to cold water laundry, divest from fossil fuels, save water, shop wisely, Donate if you can, grow your food, volunteer, conserve energy, compost, and don’t forget about the microplastics and microbeads lurking in common household and personal care products!