Financial services members of the U.S. Climate Finance Working Group published their principles for transitioning to a low-carbon economy Thursday.
The group of 11 financial services trade associations include American Bankers Association, Bank Policy Institute, CRE Finance Council, Financial Services Forum, Futures Industry Association, International Capital Market Association, Institute of International Bankers, Institute of International Finance, International Swaps and Derivatives Association, Investment Company Institute, and the Securities Industry and Financial Markets Association.
Their Principles for a U.S. Transition to a Sustainable Low-Carbon Economy offer a framework for banks, asset managers, investment funds, pension funds and other financial interests to work toward a low-carbon economy. The principles include setting science-based climate policy goals that align with the Paris Agreement, carbon pricing, promoting more robust climate disclosure and international standards, and ensuring that climate-related financial regulation is risk-based.
"The transition to a low-carbon economy will require concerted and coordinated action by all stakeholders, including tremendous reliance of financial markets to facilitate green equity investment, sector transition financing and liquidity and risk management," SIFMA president and CEO Kenneth E. Bentsen Jr. said in a statement.
