CFTC Issues Request for Information on Climate-Related Financial Risk
The Commodity Futures Trading Commission (CFTC) released a request for information and is seeking comments, until August 8, 2022, to better inform the oversight of climate-related financial risk as pertinent to the derivatives markets and the underlying commodities markets.
The request for information will cover all aspects of climate-related financial risk as it may pertain to the derivatives markets, underlying commodities markets, registered entities, registrants, and other related market participants. CFTC seeks response on questions specific to data, scenario analysis and stress testing, risk management, disclosure, product innovation, voluntary carbon markets, digital assets, greenwashing, financially vulnerable communities, and public-private partnerships and engagement. The responses received will help CFTC in its next step to promote responsible innovation, ensure the financial integrity of all transactions subject to the Commodity Exchange Act, and avoid systemic risk. It will also inform response to the recommendations of the Financial Stability Oversight Council's 2021 report on climate-related financial risk and inform the ongoing work of the Climate Risk Unit of CFTC. This information will be used to inform future actions including, but not limited to, the issuance of new or amended guidance, interpretations, policy statements, regulations, or other potential actions within the CFTC authority under the Commodity Exchange Act as well as the CFTC participation in any domestic or international fora.
Keywords: Americas, US, Banking, Securities, ESG, Climate Change Risk, Derivatives, Scenario Analysis, Stress Testing, Disclosures, Digital Assets, Greenwashing, Systemic Risk, CFTC, Carbon Markets
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