Quarles of the Federal Reserve seeks global coordination of climate-related financial risks Reuters

(Reuters)-The Chairman of the Financial Stability Board said on Sunday that global financial regulators need to work together to deal with climate-related financial risks, and urged institutions responsible for setting disclosure standards to “move forward as soon as possible.”

Randal Quarles, who also serves as the Fed’s Vice Chairman of Supervision, also called for international efforts to develop comprehensive and comparable data on climate-related risks, including a better understanding of the impact of extreme weather events on businesses, banks, and The hazards of household balance sheets.

“Globally consistent, comparable and reliable disclosures, as well as a wider range of high-quality relevant data, can provide a basis for assessing climate-related financial risks and their impact on financial stability,” Quarles said in a prepared comment Delivered to the Venice International Climate Change Conference.

Quarles said that one of the first tasks the FSB is carrying out is to coordinate financial indicators that can be used for scenario analysis with global central banks. This is a method of assessing banks’ risks to climate stressors. It is ongoing in some countries, but in the United States. Facing political resistance.

The FSB, which coordinates financial rules for the G20 Group, released a “climate roadmap” earlier this week to help international regulators agree on goals and milestones for better management of climate-related risks.