At the 26th UN Climate Change Conference of the Parties ("COP26") in Glasgow, Treasury Secretary Janet L. Yellen applauded private sector support for financing the transition to a net-zero economy. Secretary Yellen stated that financial institutions collectively managing almost $100 trillion have joined together under The Glasgow Financial Alliance for Net Zero, pledging carbon-neutral portfolios by 2050 and reduced emissions by 2030.
Secretary Yellen stated that resiliency against climate-related risks must be built into the financial system through enhanced climate-related data and disclosure, in accordance with Executive Order 14030 ("Climate-Related Financial Risk") and the Financial Stability Oversight Council's recent recommendations. Secretary Yellen also called attention to the G20 Sustainable Finance Roadmap.
Relatedly, the Federal Reserve Board and the OCC expressed support for the Glasgow Declaration, which reiterates a commitment to Paris Agreement objectives. In a statement by Acting Comptroller of the Currency, Michael J. Hsu the OCC also said that it intends to issue, by year's end, framework guidance on "high-level climate risk management supervisory expectations for large banks."
Primary Sources
- Treasury Statement, Janet L. Yellen: Keynote Remarks by Secretary of the Treasury at COP26 in Glasgow, Scotland at the Finance Day Opening Event
- Treasury Statement, Janet L. Yellen: Remarks by Secretary of the Treasury at COP26 in Glasgow, Scotland: "Delivering Finance for Emerging Markets and Developing Economies"
- Federal Reserve Board Press Release: Federal Reserve Board issues statement in support of the Glasgow Declaration by the Network of Central Banks and Supervisors for Greening the Financial System (NGFS)
- OCC Press Release: Acting Comptroller of the Currency Issues Statement in Support of the NGFS Glasgow Declaration
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