Credit unions are in a unique position to aid in the transformation related to climate change, according to a new report from Filene Research Institute.
Credit unions are an integral part of the U.S. consumer finance system, offering an important alternative to commercial banks and nonbank financial service providers, according to the report. As a result, credit unions have an essential role to play as financial system stakeholders mobilize to address climate change and the challenges it creates, and ultimately, as the United States undertakes a transition to a net-zero carbon emission economy, the report states.
The report also provides an overview of the implication of climate change for credit unions, and recommendations for more effective climate risk management, and describes the climate-related physical and transition risks facing credit unions, the potential impact of climate change on credit unions, the current state of credit union approaches to climate change, and the opportunities available for credit unions from climate adaptation finance.
In addition, the report provides recommended actions that individual credit unions can take to begin to measure and mitigate the impacts of climate change on their organizations and the credit union system.
The report can be downloaded on the Filene Research Institute webpage.