US President Joe Biden’s May 20, 2021, executive order laid out an aggressive, whole-of-government plan to address climate change risk, including a set of directives that will have a major impact on the operations of the federal government and on the regulation of financial markets participants. While the effects on regulation of banks and financial services companies are somewhat clearer, state-regulated insurance companies face a murkier, less well-defined future. This On the Subject reviews recent developments in climate change risk management in the United States and in Europe, and outlines some of the challenges that lie ahead.
MAY 20 EXECUTIVE ORDER
On May 20, 2021, US President Joe Biden issued his Executive Order on Climate-Related Financial Risk (EO) that sketched out a whole-of-government approach to addressing climate change risk, both for federal government operations and also for the regulation of many…