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U.S. Treasury's Yellen says FSOC will be her primary tool for climate risk

FILE PHOTO: U.S. Treasury Secretary-designate Janet Yellen in Wilmington, Delaware, U.S., December 1, 2020. REUTERS/Leah Millis

WASHINGTON (Reuters) - U.S. Treasury Secretary Janet Yellen said on Wednesday she will use the multi-regulator Financial Stability Oversight Council (FSOC) as her primary tool in assessing climate change risks and developing disclosure policies to promote a transition to a low-carbon economy.

Yellen, speaking to the Institute of International Finance’s Sustainable Finance Summit, said that FSOC will serve as a convening body that can “put all the information from the regulator’s together to try to form a view on the overall risk to our financial system and the climate risk that climate change may pose.”

“In looking at disclosures, regulators also face common challenges in assessing the impact of climate risks on regulated institutions and what FSOC will do is bring regulators together to share perspectives and identify elements and solutions,” Yellen added.

Reporting by David Lawder; Editing by Chris Reese