May 20 -- Fact Sheet:
https://www.whitehouse.gov/briefing-room/statements-releases/2021/05/20/fact-sheet-president-biden-directs-agencies-to-analyze-and-mitigate-the-risk-climate-change-poses-to-homeowners-and-consumers-businesses-and-workers-and-the-financial-system-and-federal-government/
Executive Order on Climate-Related Financial Risk:
https://www.whitehouse.gov/briefing-room/presidential-actions/2021/05/20/executive-order-on-climate-related-financial-risk/
Section 1. Policy. The intensifying impacts of climate change present physical risk to assets, publicly traded securities, private investments, and companies — such as increased extreme weather risk leading to supply chain disruptions. In addition, the global shift away from carbon-intensive energy sources and industrial processes presents transition risk to many companies, communities, and workers. At the same time, this global shift presents generational opportunities to enhance U.S. competitiveness and economic growth, while also creating well-paying job opportunities for workers. The failure of financial institutions to appropriately and adequately account for and measure these physical and transition risks threatens the competitiveness of U.S. companies and markets, the life savings and pensions of U.S. workers and families, and the ability of U.S. financial institutions to serve communities. In this effort, the Federal Government should lead by example by appropriately prioritizing Federal investments and conducting prudent fiscal management.
It is therefore the policy of my Administration to advance consistent, clear, intelligible, comparable, and accurate disclosure of climate-related financial risk (consistent with Executive Order 13707 of September 15, 2015 (Using Behavioral Science Insights to Better Serve the American People)), including both physical and transition risks; act to mitigate that risk and its drivers, while accounting for and addressing disparate impacts on disadvantaged communities and communities of color (consistent with Executive Order 13985 of January 20, 2021 (Advancing Racial Equity and Support for Underserved Communities Through the Federal Government)) and spurring the creation of well-paying jobs; and achieve our target of a net-zero emissions economy by no later than 2050. This policy will marshal the creativity, courage, and capital of the United States necessary to bolster the resilience of our rural and urban communities, States, Tribes, territories, and financial institutions in the face of the climate crisis, rather than exacerbate its causes, and position the United States to lead the global economy to a more prosperous and sustainable future.
Section headings (persons and councils responsible):
2. Climate-Related Financial Risk Strategy (NEC Director, National Climate Advisor, OMB Director)
3. Assessment of Climate-Related Financial Risk by Financial Regulators (Financial Stability Oversight Council)
4. Resilience of Life Savings and Pensions (Secretary of Labor)
5. Federal Lending, Underwriting, and Procurement (OMB Director, NEC Director, Federal Acquisition Regulatory Council, Secretary of Agriculture, Secretary of Housing and Urban Development, Secretary of Veterans Affairs, heads of agencies)
6. Long-Term Budget Outlook (OMB Director, CEA Chair)
Media summaries:
Scientific American:
https://www.scientificamerican.com/article/biden-executive-order-targets-climate-financial-risks/
NY Times:
https://www.nytimes.com/2021/05/20/climate/biden-climate-change-economy.html
Bloomberg
https://www.bloomberg.com/news/articles/2021-05-20/biden-to-order-climate-risk-strategy-for-financial-assets-today
Government Executive:
https://www.govexec.com/management/2021/05/biden-requires-climate-considerations-budget-process/174224/