WASHINGTON, D.C.—Phillip Basil, Director of Banking Policy, issued the following statement on the filing of a Better Markets Comment Letter in response to the Basel Committee on Banking Supervision’s Consultative Document “Principles for the effective management and supervision of climate-related financial risks”.

“Better Markets applauds the publication of these principles as an important step in addressing climate-related financial risks, which can have serious effects on the safety and soundness of banks as well as overall financial stability. As an international standard-setting body, the Basel Committee On Banking Supervision has a unique role in addressing the global nature of climate-related financial risks.

“Considering the broad range of risks that climate change can pose, we welcome the Committee’s approach of largely integrating climate risks into existing risk management principles with some additions that capture unique aspects of climate risks—in particular, the use of scenario analysis to identify and size risks, the consideration of longer time horizons, and the recognition that climate risks and their management are an evolving process.

“While we propose additional steps we urge the Committee to incorporate, the BCBS has laid an important foundation on which further efforts to mitigate climate-related financial risks can be built.”

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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.

Contact: Evelyn Swan at 202-618-6433 or eswan@bettermarkets.org