(c) areas in which private and public investments can play complementary roles in meeting these financing needs—while advancing economic opportunity, worker empowerment, and environmental mitigation, especially in disadvantaged communities and communities of color.
Sec. 3. Assessment of Climate-Related Financial Risk by Financial Regulators. In furtherance of the policy set forth in section 1 of this order and consistent with applicable law and subject to the availability of appropriations:
(a) The Secretary of the Treasury, as the Chair of the Financial Stability Oversight Council (FSOC), shall engage with FSOC members to consider the following actions by the FSOC:
- (i) assessing, in a detailed and comprehensive manner, the climate-related financial risk, including both physical and transition risks, to the financial stability of the Federal Government and the stability of the U.S. financial system;
- (ii) facilitating the sharing of climate-related financial risk data and information among FSOC member agencies and other executive departments and agencies (agencies) as appropriate;
- (iii) issuing a report to the President within 180 days of the date of this order on any efforts by FSOC member agencies to integrate consideration of climate-related financial risk in their policies and programs, including a discussion of:
- (A) the necessity of any actions to enhance climate-related disclosures by regulated entities to mitigate climate-related financial risk to the financial system or assets and a recommended implementation plan for taking those actions;
- (B) any current approaches to incorporating the consideration of climaterelated financial risk into their respective regulatory and supervisory activities and any impediments they faced in adopting those approaches;
- (C) recommended processes to identify climate-related financial risk to the financial stability of the United States; and
- (D) any other recommendations on how identified climate-related financial risk can be mitigated, including through new or revised regulatory standards as appropriate; and
- (iv) including an assessment of climate-related financial risk in the FSOC’s annual report to the Congress.
(b) The Secretary of the Treasury shall:
- (i) direct the Federal Insurance Office to assess climate-related issues or gaps in the supervision and regulation of insurers, including as part of the FSOC’s analysis of financial stability, and to further assess, in consultation with States, the potential for major disruptions of private insurance coverage in regions of the country particularly vulnerable to climate change impacts; and
- (ii) direct the Office of Financial Research to assist the Secretary of the Treasury and the FSOC in assessing and identifying climate-related financial risk to financial stability, including the collection of data, as appropriate, and the development of research on climate-related financial risk to the U.S. financial system.
Sec. 4. Resilience of Life Savings and Pensions. In furtherance of the policy set forth in section 1 of this order and consistent with applicable law and subject to the availability of appropriations, the Secretary of Labor shall:
(a) identify agency actions that can be taken under the Employee Retirement Income Security Act of 1974 (Public Law 93–406), the Federal Employees’ Retirement System Act of 1986 (Public Law 99–335), and any other relevant laws to protect the life savings and pensions of United States workers and families from the threats of climate-related financial risk;
(b) consider publishing, by September 2021, for notice and comment a proposed rule to suspend, revise, or rescind “Financial Factors in Selecting
