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CFTC to assess climate change risk and possible mitigation steps

The Commodity Futures Trading Commission will begin assessing the financial risks associated with climate change, Commissioner Rostin Behnam said Wednesday at a meeting of the agency’s market risk advisory committee.

“Assessing climate-related market risk must be a priority — and it must start now,” said Mr. Behnam, who sponsors the CFTC’s risk committee. He announced formation of a subcommittee to examine climate-related financial-market risk and possible steps to mitigate it, with the help of experts from relevant disciplines.

Mr. Behnam noted that market regulators in other countries, some of whom were represented at the risk committee meeting, are taking steps to assess and mitigate climate change financial risks, and the U.S. “must also demand action from all segments of the public and private sectors, including this agency.” If not, commodity markets and the financial markets that support them will suffer, along with economic growth and rural communities, he said.

The Financial Stability Board’s Task Force on Climate-Related Financial Disclosures is working to provide data for market participants on how climate-related risks are assessed, priced, disclosed and managed, and other regulators “have already begun taking important steps to address the impacts of climate change on financial systems,” including the Network for Greening the Financial System, a group of more than 40 central banks and supervisors that includes the European Central Bank, the World Bank and the People’s Bank of China, he said.

Along with the impact of extreme weather events on people, “the economic element is also just as real. Risk exposures to insurance providers, asset managers, pension funds, commercial and retail banks — all users of derivatives markets — to price and shift risk, cannot be understated,” he said.


The Indo-Pacific is a hotbed for natural disaster risk, and governments around the region are mandating that companies maintain disaster and emergency preparedness capabilities within their Quality, Health, Safety and Environment teams in alignment with certification requirements under OHSAS and ISO.


But plans based on historical data are now out of date. The unpredictability of natural disasters is increasing. We are seeing five 1,000-year floods in less than a year, and tornadoes in places not known for tornadoes.


So we must begin planning for a changing paradigm. We can no longer pass the responsibility solely to government, or to the private sector. A dynamic end-to-end approach is needed. And we must approach preparedness from an all-hazards perspective.


When you attend this year’s Indo-Pacific Disaster and Emergency Response Summit, you gain from the knowledge, understanding, and hard-won experience of the emergency managers who have proven themselves effective in the face of mega-disasters, so you can be ready for your own.


Register today! Super Early Bird discounts save you $300 off the usual delegate rate of $1850 until July 15, 2019. Philippine companies can register for the Pre-Conference Symposium at only $200. Call +65 6602 8264 or email

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