OFR Launches Pilot of Climate Data and Analytics Hub
The Financial Stability Oversight Council (FSOC) outlined the progress on the recommendations set forth in the October 2021 report on climate-related financial risks while the Office of Financial Research (OFR) announced the launch of its Climate Data and Analytics Hub pilot program, which is a new tool to help financial regulators assess potential risks to financial stability stemming from climate change.
The Climate Data and Analytics Hub will allow pilot participants to integrate data (including wildfire, crop condition, precipitation, and other climate-related data) from across the federal government with their public supervisory data for a more precise view of the relationship between climate change and financial stability risk. The Hub is also equipped with statistical and visualization applications that will allow deeper insight into climate-related financial risks. This collaborative environment will improve user access to public climate and public financial data, high-performance computing tools, and analytical and visualization software. Access to the pilot initially will be limited to the Federal Reserve Board of Governors (FED and the Federal Reserve Bank of New York (NY FED), with the goal of expanding access to all of the Financial Stability Oversight Council (FSOC) member agencies. While use of the Climate Data and Analytics Hub will be restricted to federal agencies, OFR intends to expand the number of FSOC agencies that can access it. OFR also plans to expand the Hub in terms of the number of data sets offered. The Hub utilizes software such as R, Python, and Tableau and offers access to high-power computing clusters to facilitate machine learning.
The FSOC statement notes the considerable progress in advancing the recommendations identified in the report, including significant actions taken by members to address capacity building, disclosure, data, and assessment and mitigation of risks. It also highlighted the members’ efforts in enhancing public climate-related disclosures, assessing and mitigating climate-related risks that could threaten U.S. financial stability, building capacity and expanding efforts to address climate-related financial risks, and filing climate-related data and methodological gaps. Going forward, FSOC and its members will continue its work to enhance coordination, build capacity, and promote the resilience of the financial system to the risks posed by climate change.
Related Links
- Press Release on Climate Data and Analytics Hub
- Fact Sheet on Climate Data and Analytics Hub (PDF)
- Statement on Progress in Addressing Climate Risk (PDF)
Keywords: Americas, US, Banking, Securities, Insurance, ESG, Climate Change Risk, Financial Stability, Disclosures, Climate Data and Analytics Hub, Machine Learning, Dodd Frank Act, FED, FSOC, OFR
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