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A White House executive order directs federal agencies to identify and mitigate the financial risks of climate change. The order requires creating a government-wide strategy to combat climate risks.

  • Corinne Dougherty, partner for federal audit at KPMG, said implementing the order is a monumental but doable task and will save money for the federal government in the long term.
  • Dougherty said there are two types of risks involved: physical risks, which deal with damage to assets and infrastructure from climate-related weather events, and transition risks, which are from the government’s transition to a net-neutral economy.
  • The major steps include developing strategies for the entire government and individual agencies by identifying and prioritizing key climate risks, pinpointing necessary operational changes, making implementation roadmaps, measuring progress and reporting, said Dougherty.
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