April 21, 2021

Treasury announces new ESG initiative

On April 19, 2021, the US Department of the Treasury announced a coordinated climate policy strategy under the leadership of its first Climate Counselor, John E. Morton, formerly the White House Senior Director for Energy and Climate Change at the National Security Council.  The Climate Counselor will be responsible for the work of a new group within the Treasury, the Climate Hub.

The Climate Hub will coordinate Treasury’s expanded climate strategy work program, which incorporates climate transition finance, climate-related economic and tax policy, and climate-related financial risks.  Treasury’s increased focus on climate strategy is designed to help mobilize financial resources for climate-friendly investments, promote climate-resilient infrastructure, and help businesses and their investors analyze and adapt to the economic and financial risks — and opportunities — related to climate change. 

Companies face new compliance challenges when taking advantage of these opportunities.  Additional guidance on these issues is available from Willkie here, here and here

US Dept of the Treasury press release