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Office of Financial Research pilots data hub for climate-risk assessments

The US Office of Financial Research (OFR) has launched a climate data and analytics hub pilot to help regulators assess risks to financial stability stemming from climate change.

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Office of Financial Research pilots data hub for climate-risk assessments

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The pilot will boost access to public climate and financial data, high-performance computing tools, and analytical and visualisation software.

Participants will be able to integrate data from across the federal government, including wildfire, crop condition, precipitation, and other climate-related data with their public supervisory data for a more precise view of the relationship between climate change and financial stability risk.

Access to the pilot initially will be limited to the Federal Reserve Board of Governors and the Federal Reserve Bank of New York. with the goal of expanding access to all of the Financial Stability Oversight Council member agencies.

Nellie Liang, Treasury Department under secretary for domestic finance, says: "Delivering a clearer assessment of financial risks due to climate change requires both climate data and financial data - information that is often siloed - and the ability to integrate these data.

"Today, the Office of Financial Research is taking an important step toward enabling policymakers to better understand and address risks to the financial system posed by climate change.

"By providing a shared database of both climate data and financial data and high-powered computing tools, OFR’s climate hub pilot will help streamline regulators’ access to this critical information, providing a new, more comprehensive view of climate-related financial risks."

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