On October 15, 2021, the White House released a report entitled, “A Roadmap to Build a Climate-Resilient Economy” (“Strategy Report”), which provides “a comprehensive, government-wide strategy to measure, disclose, manage, and mitigate the systemic risks climate change poses to American families, businesses, and the economy.”  The Strategy Report’s purpose is to protect retirement plans, homeowners, consumers, businesses and supply chains, workers, and the federal government from financial risks of climate change.  To accomplish this, the Strategy Report seeks to ensure that climate-related financial risks are measured, disclosed, managed, and mitigated across the economy to the benefit of American workers, families, and businesses.      

According to the Strategy Report, the effects of climate change are hurting American families.  In this year alone, the Report states that climate change has impacted the lives of one in three Americans through extreme weather, has disrupted supply chains, caused the burning of nearly six million acres, and has exacerbated delays and shortages for consumers and businesses.  The Report also states that American families are paying the costs, including $600 billion in physical and economic damages over the past five years, plus billions more in lost pension value. 

The Strategy Report recognizes that there is a global shift away from carbon-intensive economies that “presents transition risk and opportunity to companies, communities, and workers.”  According to the Strategy Report, “the climate crisis also presents a generational opportunity for the United States to emerge as a leader in creating a net-zero economy” and this transition “presents the opportunity to spur equitable, just, and sustainable economic development, enabling more Americans to realize their fair share of the net-zero future.”

To address the systemic risk that climate change poses to the American economy and financial system, the Strategy Report recommends six broad strategies: (1) promote the resilience of the U.S. financial system to climate-related financial risks; (2) incorporate climate-related financial risk into Federal financial management; (3) use federal procurement to address climate-related financial risk; (4) protect life savings and pensions from climate-related financial risk; (5) incorporate climate-related financial risk into federal lending and underwriting; and (6) build resilient infrastructure and communities. A factsheet released with the Strategy Report highlights several recent and impending governmental actions seeking to implement the strategies identified above. 

A copy of the Strategy Report is available here.  A copy of the factsheet is available here.  

If you have any questions about the Strategy Report or its impacts on your business planning and operations, please contact insights@goodstewardlegal.com.

Good Steward Legal is a principles-based business law office dedicated to protecting and advancing its clients’ interests by providing them with cost-effective, high-quality legal service.