Ceres CEO and President Mindy Lubber has been appointed to the first-ever U.S. federal advisory committee focused on addressing the short and long-term financial and market risks posed by climate change to capital markets and throughout the broader economy.
Lubber was appointed to the Climate-Related Market Risk Subcommittee of the U.S. Commodity Futures Trading Commission (CFTC) Market Risk Advisory Committee (MRAC). The 35-member body, chaired by Bob Litterman of Kepos Capital, is comprised of a range of experts representing financial market institutions, banking and insurance sectors, data service providers, environmental and sustainability organizations and others, according to a press release issued this week.
“Each member has demonstrated expertise in one or more disciplines in which they have devoted significant time and consideration to the challenges presented by the risks of climate change,” the release stated.
The CFTC received 90 nominations for committee membership.
“I am honored to be selected as a member of the committee and look forward to contributing to this important work, which will encourage financial regulators and market participants to focus on the biggest financial and environmental threat of our time,” said Ceres CEO and President Mindy Lubber. “It is vital to see U.S. financial regulators, including the CFTC, begin to take steps to better understand and address the systemic financial and market impacts of the climate crisis.”
The committee is tasked with developing a public report with recommendations to financial regulators on how to best mitigate climate-related financial and market risks. The committee may consider how investors and companies can better integrate scenario analysis and governance initiatives into risk assessments and reports. It is also expected to identify policy solutions for climate risk management and disclosure that support long-term financial stability.
“Investors have long called for better economy-wide market and corporate data on managing climate-related financial risks and spurring opportunities for low-carbon, sustainable investments,” Lubber added. “The formation of the committee comes at a critical time as calls get louder for increased regulatory and policy action.”
Last month, Ceres launched the Ceres Accelerator for Sustainable Capital Markets to move financial regulators to act on climate change as a systemic financial risk, and work with the world’s most influential asset owners to transition their investment portfolios to net-zero greenhouse gas emissions by 2050. In its initial phase, Ceres aims to demonstrate that climate change is a systemic financial risk which U.S. financial regulators must address to preserve the stability of the financial system.
Over time, the Ceres Accelerator aims to transform the practices and policies that govern capital markets in order to accelerate action on reducing the worst financial impacts of the climate crisis and other sustainability threats.