Climate-Related Risk: CFTC Request for Information

June 2022

KPMG Insights. The CFTC joins the other financial services regulators in seeking input on the quickly evolving regulatory landscape for measuring, monitoring, analyzing, and reporting climate-related risks. CFTC expects that market participants from across all sectors, including agricultural, industrial, and financial sectors, will increasingly turn to the derivatives markets to manage/hedge the impact of physical and transition risks and indicates that the RFI will serve to inform, educate, and engage the agency and market participants on climate-related policymaking. Although the RFI was unanimously approved, it is notable that some Commissioners did raise concerns regarding the broad scope of information requested and the limits of CFTC’s statutory authorities. Nonetheless, CFTC registrants should be formalizing climate risk governance and risk management and actively evaluating potential risks and opportunities (aligning with TCFD, as appropriate) and the use of scenario analysis.