Managing Climate Risk in the U.S. Financial System, Report of the Climate-Related Market Risk Subcommittee
Sep 9, 2020
For the first time ever, an expert subcommittee of a federal financial regulatory agency issued a major report on climate risk. John Colas, Oliver Wyman Partner and Vice Chairman of the Financial Services practice, represented Marsh & McLennan Companies in this initiative.
Climate change poses a major risk to the stability of the U.S. financial system and to its ability to sustain the American economy. Climate change is already impacting or is anticipated to impact nearly every facet of the economy, including infrastructure, agriculture, residential and commercial property, as well as human health and labor productivity. Over time, if significant action is not taken to check rising global average temperatures, climate change impacts could impair the productive capacity of the economy and undermine its ability to generate employment, income, and opportunity. Even under optimistic emissions reduction scenarios, the United States, along with countries around the world, will have to continue to cope with some measure of climate change-related impacts.
In particular, we are proud to have contributed our expertise and insights on Climate Scenarios in the Context of Financial Stress-Testing and supported this recent report of the Climate-Related Market Risk Subcommittee, Market Risk Advisory Committee of the U.S. Commodity Futures Trading Commission. Read the full report here.