Federal authorities will be able to require suppliers of products and services to provide information about harmful emissions and other climate risks.
President Joe Biden directed federal agencies to assess and try to mitigate the ever-increasing and serious risks that climate change poses to both people and businesses, the federal government, and the US financial system.
Biden issued an executive order requiring a comprehensive, statewide climate risk strategy to be developed within 120 days, as well as the results of an annual climate-related fiscal risk assessment for the federal budget.
The executive order, White House sources said, would allow the federal government, which spends more than $ 550 billion a year buying products and services, to require major suppliers to provide more transparent information about greenhouse gas emissions and climate risks.
“This cannot be optional for execution. The stakes are too high. The federal government must lead by example, “said Gina McCarthy, the White House climate adviser,” and we must demand the same level of responsibility from those with whom we do business.”
The executive order directs Labor Secretary Marty Walsh to consider revising, suspending, or repealing rules introduced during the Trump administration that forced pension fund managers to put the financial interests of retirees ahead of possible climate change and other issues when allocating investments.
The executive order, which was originally scheduled to be signed in April during a climate summit with world leaders hosted by Joe Biden, also allows the independent Financial Stability Oversight Board, headed by Treasury Secretary Janet Yellen, to assess climate risks to the stability of the federal government and the financial system.
Yellen told reporters that this issue would become a priority for her. “Our pensions, our savings, our future livelihoods depend on the financial sector to build a more sustainable economy,” she said. “We all need better tools and more data to make informed decisions. This decree has become a guide with which we can achieve (the goal).”