The Commodity Futures Trading Commission (CFTC) on Wednesday announced the formation of a “Climate Risk Unit” to support the agency’s efforts to determine the role of derivatives in addressing climate-related risks.
The announcement comes on the heels of a handful of similar initiatives launched by the Securities and Exchange Commission (SEC) in recent weeks with regard to U.S. markets. The agencies’ actions are part of a large-scale push under the Biden administration to confront climate change and enhance environmental, social, and governance (ESG) ideals.
