Compliance And Risk Considerations – Executive Order On Climate-Related Financial Risks

On May 20, 2021, President Biden signed Executive Order 14030 (EO 14030).¹ Stating that the "intensifying impacts of climate change present physical risk to assets, publicly traded securities, private investments, and companies," EO 14030 seeks to increase disclosure of climate-related financial risk by both the public sector and private sector. As a result, we can expect expanding disclosure and reporting obligations regarding climate-related risks and enhanced scrutiny of organizations subject to those obligations. A thorough understanding of what to expect from EO 14030's call for a comprehensive, government-wide consideration of climate change-related financial risks, and how the Order may impact existing federal programs is critical to mitigating risk and ensuring compliance.