Senator Elizabeth Warren of Massachusetts sent letters to the executives of U.S. banks, that are listed as global systemically important, asking them about their plans for the upcoming risks that the financial sector has to face regarding the climate crisis.
“I write to ask for more information about the risks caused by the climate crisis on the financial industry and your institution’s practices, including what steps, if any, your institution is taking to adapt to mitigate these risks,” stated Warren.
The letters were sent on Tuesday to the Chief Executive Officers of Bank of America (NYSE: BAC), Bank of New York Mellon (NYSE: BK), Citigroup (NYSE: C), Goldman Sachs (NYSE: GS), JP Morgan (NYSE: JPM), Morgan Stanley (NYSE: MS), State Street (NYSE: STT) and Wells Fargo (NYSE: WFC).
Warren asked the U.S. banks for detailed written responses before February 7, 2020.
The U.S. Senator said in her letters: “The climate crisis demands that banks accurately estimate and mitigate risks to social and economic stability; it also presents mutually beneficial investment opportunities, particularly in climate-resilient urban infrastructure.”
“To protect themselves and the economy from climate-driven catastrophes, large financial institutions must act quickly to address risks,” Warren continued.
Not only the current Australian Bushfires have caused awakening for global warming and its consequences. Protests for climate justice and against global warming have dramatically increased worldwide in the last year, demanding for action and are now important parts of the political agenda.
The consequences of global warming, caused by human-generated greenhouse gases, are so tremendous, that financial institutions started to be concerned about possible results, including decreasing values of homes against which banks have lent crucial amounts of money.
Financial Regulators further need to take the potential impact of political decisions into account.
Senator of Massachusetts, Elizabeth Warren is a candidate for the Democratic presidential race and known to be critical against Wall Street as well as fighting for climate change.
The former Professor at the Harvard Law School proposed the Consumer Financial Protection Bureau, in the aftermath of the 2007-08 financial crisis, to protect Main Street from Wall Street.
Warren is also a cosponsor of the Climate Change Financial Risk Act of 2019, which would add new climate risk scenarios to the Federal Reserve bank stress tests.