Across all industries, organizations are responding to consumer and investor concerns about sustainability and emissions standards. In financial services, regulators are even urging institutions to assess climate-related financial risks.
In fact, the Office of the Comptroller of the Currency recently identified the effects of climate change and the transition to a low-carbon economy as presenting emerging risks to banks and the financial system.
Credit unions are not exempt. National Credit Union Administration Chairman Todd M. Harper released statements at the end of last year citing the agency’s work on climate financial risk. However, the board emphasized in March that it will not micromanage credit union policies as credit unions consider the risks of climate change.
Regardless, financial institutions are being pressured to ramp up their environmental, social and corporate governance efforts, both internally to lower their carbon footprint, but also within their lending operations.
continue reading »