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ARTICLE · 04 JUNE 2021

President Biden's "Climate-Related Financial Risk" Executive Order Pushes Forward On The Administration's ESG Commitments

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On May 20, 2021, President Biden signed an Executive Order to address predicted financial instability in the federal government as a result of climate change.

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On May 20, 2021, President Biden signed an Executive Order to address predicted financial instability in the federal government as a result of climate change. This Executive Order showcases a dramatic change in how the Biden Administration's stance towards climate-finance and environmental, social, and governance (ESG)-based investments will differ from the previous administration.

The Executive Order, titled "Climate-Related Financial Risk" seeks to "bolster the resilience of our rural and urban communities, States, Tribes, territories, and financial institutions in the face of the climate crisis . . ." To do so, the Executive Order directs several federal agencies to assess climate-finance risks and to recommend or issue policies to mitigate those risks.

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