Treasury takes steps to understand the effects of climate change on financial markets

On October 3, 2022, the Financial Stability Oversight Council of the US Department of the Treasury announced the establishment of the Climate-related Financial Risk Advisory Committee (“CFRAC”), pursuant to Section 111(d) of the Dodd-Frank Wall Street Reform and Consumer Protection Act.  The CFRAC’s initial set of twenty committee members draws from academia, the banking and asset management sectors, government agencies such as the National Oceanic and Atmospheric Administration and the Environmental Protection Agency, and climate and sustainability-focused non-governmental organizations.  The CFRAC will help the Financial Stability Oversight Council identify, assess and respond to the risks to the financial system posed by climate change.

US Dept of the Treasury press release | CFRAC charter