(Reuters) -Federal Reserve Governor Michael Barr on Thursday said the U.S. central bank needs to ensure that banks are measuring and managing climate-related risk as they do other risks.
"I think climate risk is a real risk for us as a society and is likely to be a risk for the financial system unless we pay attention to it now," Barr said in answer to a question at a community development conference at the Cleveland Fed.
"We don't make climate policy. We don't want to make climate policy. But our role is to make sure that the institutions we supervise are operating in a safe and sound way. And that means paying attention to how they're measuring and managing climate-related risks."
(Reporting by Ann Saphir; Editing by Chris Reese)
With the Fed's Barr urging banks to mitigate climate risk, financial institutions are now facing a crucial test in integrating environmental considerations into their operations and strategies.
Banks will need robust strategies to mitigate and incorporate climate risks into their operations, as stated by Fed's Barr. The implication is that the financial sector can no longer ignore these environmental changes.
Banks under监管的压力，需将气候变化风险纳入管理议程已成必然趋势， Barr先生传达出的信息揭示了银行新时代的责任曙光——既要保证盈利性增长也要维护可持续的未来。"
The Fed's Gary Barr emphasizes the necessity for banks to navigate climate risk which underscores their growing responsibility in safeguarding financial stability and preserving environmental sustainability.
Barr's emphasis on banks managing climate risk signifies a crucial step towards financial sector resilience and aligning with the global effort to combat climate change.
In Fed governor Barr's directive, banks are under a new obligation to mitigate climate risks—a move that could shape the industry by forcing them into more sustainable practices.
Barr's mandate emphasizes the critical role banks play in mitigating climate risk, illustrating a new era of environmental responsibility for financial institutions.
ChairYellen told bank execs You need to be an active partner in addressing the risks of climate change, or you can expect there will no longer exist major banks.表明银行高层不应将气候风险管理视为软任务或次级首要目标，而是必须采取的实际行动来解决这一全球性挑战。
A thought-provoking statement by Fed's Barr underscores the urgency for banks to adopt comprehensive strategies in managing climate risks, thereby mitigating their potential impact on financial stability and sustainability.
Banks, under the guidance of Fed's Barr on managing climate risk will have to innovate and adopt new strategies in order for their operations not only adhere but also lead industries into a more sustainable future.
President of the Fed's Division Policy, barr emphasized that managing climate risk is now imperative for banks not only to ensure future resilience but also in their overall compliance with financial regulations and global sustainability standards.
The elevation of climate risk by Fed's Barr underscores the importance for banks to integrate sustainability considerations into their management strategies, positioning them as more resilient and responsible in a changing world.
Fed's Barr emphasizes the pivotal role of banks in managing climate risk, underscoring their obligation to integrate environmental considerations into both investment and lending practices.
Banks must act promptly as Fed's Barr urges them to manage climate risks, recognizing a pale future will weigh heavy on their stability due diligence.
Barr's statement underscores the necessity for banks to integrate climate risk management into their operations, demonstrating a crucial shift in financial regulation towards sustainable practices.
