The New York Department of Financial Services has urged local companies to take greater action on financial risks associated with climate changes.
In its letter issued to firms across the state, the financial regulator called for the evaluation of climate change-related financial risks and take steps in mitigation.
The letter highlights risks from the reduced economic output in response to climate shocks that could lead to asset devaluation and widespread financial losses. The regulator also stressed that cryptocurrency miners should be aware of the huge environmental impact of BTC mining, which is “sizable” relative to the value of the token itself.
The regulator expects all firms in receipt of the letter to assess the risks posed by climate change to their business and take steps immediately to reduce the likely direct and indirect impacts.