CUNA would strongly oppose any rulemaking/regulatory activity in the area of climate-related financial risk beyond the request for information issued by NCUA, CUNA wrote to the agency Monday. CUNA’s comments were sent in response to NCUA’s request for information on climate-related financial risk.
“We wholeheartedly oppose any subsequent regulatory activity that would establish mandatory reporting procedures for credit unions or to otherwise prevent credit unions—directly or indirectly—from continuing to make independent business decisions as they deem most appropriate in order to serve their members,” the letter reads. “Credit unions know their operations, fields of membership, individual members, and potential risks best, certainly better than the NCUA, which appropriately focuses on the industry on a broad scale.”
CUNA adds that—if NCUA feels compelled to take subsequent steps in this area—it should be limited to informal guidance or educational resources.
“The NCUA should focus on providing credit unions with the resources they need to manage climate-related financial risks, rather than imposing any new regulations that will only hamper their ability to continue serving their members,” it reads.
It also adds NCUA can support credit unions and communities with heightened exposure to climate-related risk by providing “clear and robust support” for credit unions’ participation in programs created through the Environmental Protection Agency’s Greenhouse Gas Reduction Fund.
“While there is tremendous interest among the credit union movement to participate in the Fund and ensure that funding is routed to communities as directly as possible, the possible routes of participation for credit unions are not currently clear,” the letter reads. “Thus, we ask the NCUA to facilitate credit unions’ participation in the Fund in any manner possible.”