WASHINGTON, D.C.— Dennis Kelleher, Co-founder, President and CEO, issued the following statement in connection with the filing of Better Markets’ Comment Letter urging the Basel Committee (Committee) on Banking Supervision to further strengthen and adopt the proposed requirements on disclosure of Climate-Related Financial Risks (CRFR):

“Our economy, financial system, and citizens are increasingly threatened by severe weather and other climate-related risks. Investors, regulators, policymakers, and members of the public deserve to have the necessary information to understand banks’ exposure to these risks clearly and confidently. The Committee’s proposal for CRFR disclosure requirements for internationally active banks will increase the consistency, comparability, and reliability of this information. These disclosure enhancements will provide market participants with better information and data to assess banks’ safety and soundness and the health of the broader financial system. With more frequent and costly climate disasters wreaking havoc across the globe, this proposal is both timely and urgently needed.

“The Committee’s proposal is part of its holistic approach to address CRFR in the global banking system. The current disclosure framework does not provide adequate information on banks’ exposure to CRFR. The proposal would expand requirements for banks to clearly disclose, for example, lending and other financial services provided to companies in industries that are reliant on fossil fuels and also reveal and explain banks’ strategies to adapt to the broader transition to a low-carbon economy.

“In addition to our broad support, in our comment letter we urge the Committee to make changes to the proposal to better align with the intended objective of regulating and supervising banks worldwide. In particular, we call on the Committee to require all reporting institutions to base forecasts and transition plans on standardized parameters, accelerate the implementation of these requirements, and further integrate CRFR into the Committee’s broader work related to bank supervision. The urgency of climate change cannot be overstated; now is the time for the Committee and regulators around the globe to act.”

Read our comment letter here.

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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.