On 10/13/21, the U.S. Department of the Treasury launched a new effort to study the impact of climate change on households and communities. The Financial Literacy and Education Commission (FLEC) convened a meeting, which was chaired by Under Secretary for Domestic Finance Nellie Liang to begin to explore the financial risks to households and communities, especially low-income and historically disadvantaged communities, of climate change and climate transition.
The meeting included participation from Adair Morse, Deputy Assistant Secretary for Capital Access, David Uejio, representing the Consumer Financial Protection Bureau, Vice Chair of the Commission, Todd Harper, Chairman, National Credit Union Administration, and Richard Cordray, Chief Operating Officer for Federal Student Aid at the U.S. Department of Education.
As FLEC begins work on household climate resilience, it explained that its analysis will focus on historically disadvantaged people and regions. FLEC will work to develop an understanding of:
how households, communities, and the smallest businesses experience financial resilience in the face of climate change and climate transition, supported by resilience-supporting financial products and financial infrastructure supporting environments.
how to map climate-related financial risks, and identify which groups and regions will be most impacted; and
what tools and best practices could be effective at addressing risks and vulnerabilities and how to implement them equitably.
FLEC’s efforts are a direct response to President Biden’s Executive Orders 14030 and 13985, “Climate-Related Financial Risk” and “Advancing Racial Equity and Support for Underserved Communities Through the Federal Government.”
