For the first time, the Financial Stability Oversight Council (FSOC) has identified climate change as “an emerging and increasing threat to U.S. financial stability.”

The FSOC stated climate change’s threats to the market are both physical (wildfires, rising sea levels, stronger and more powerful storms) and transitional (changes in policy and public sentiment to entities that produce carbon emissions).

Aaron Nicodemus is the Editor-in-Chief of Compliance Week. He previously worked as a reporter for Bloomberg Law and as business editor at the Telegram & Gazette in Worcester, Mass. Email: aaron.nicodemus@complianceweek.com LinkedIn:...