Executive Order on Climate-Related Financial Risk

This order aims to reprioritise federal investments and conduct prudent fiscal management. It declares as a policy the sound disclosure of climate-related financial risk, citing Executive Order 13707/2015 on Using Behavioral Science Insights to Better Serve the American People. 

The document notably set rules regarding the assessment of Climate-Related Financial Risk by Financial Regulators. It charges the relevant administrations to 1) elaborate a Climate-Related Financial Risk Strategy within 120 days, 2) protect the life savings and pensions of United States workers and families from the threats of climate-related financial risk, 3) develop recommendations for the National Climate Task Force on approaches related to the integration of climate-related financial risk into Federal financial management and financial reporting, and 4) identify the primary sources of Federal climate-related financial risk exposure and develop methodologies to quantify climate risk within the economic assumptions and the long-term budget projections of the President’s Budget. 

The order further mandates the Federal Acquisition Regulatory Council to consider requiring major Federal suppliers to publicly disclose greenhouse gas emissions and climate-related financial risk and to set science-based reduction targets, and to ensure that major Federal agency procurements minimise the risk of climate change.