The New York State Department of Financial Services announced the creation of a new Climate Risk Division this week.
The new division fulfils the DFS mandate to ensure the safety and soundness of regulated companies as they manage the financial risks from climate change, and support the roles of institutions in advancing the low-carbon transition in enhancing communities’ resilience, said Adrienne Harris, acting DFS supervisor.
“As one of the most critical issues of our generation, climate change poses wide-ranging and material risks to the financial system,” Harris said.
According to DFS, as the finance and insurance sectors take steps toward managing their financial risks from climate change and supporting the low carbon transition, the new division will:
- integrate climate risks into its supervision of regulated entities;
- support the industry’s growth in managing climate risks;
- coordinate with international, national, and state regulators;
- develop internal capacity on climate-related financial risks;
- support the capacity-building of peer regulators on climate-related supervision; and
- ensure fair access to financial services for all communities, especially those most impacted by climate change.
Harris has named Dr. Yue (Nina) Chen director of sustainability and climate initiatives, who will lead the new division as executive deputy superintendent.
The agency has previously released industry guidance related to the financial risks from climate change that is available on the DFS website.