Climate change is a risk multiplier that exacerbates racial and economic inequality, and it is progressing at an alarming rate. Acute and increasingly frequent climate-related disasters, such as wildfires and hurricanes, as well as chronic issues such as heat stress, sea level rise, and drought, disproportionately impact low- and moderate-income (LMI) communities and communities of color.

Climate vulnerability refers to individuals and communities which experience heightened risk and increased sensitivity to climate change while also having less capacity and fewer resources to cope with, adapt to, or recover from climate impacts. These disproportionate effects are caused by physical (built and environmental), social, political, and/ or economic factor(s), which are exacerbated by climate impacts.

Here is a memo written by AFR and the Greenlining Institute on the need for banking regulators to incentivize banks to build relationships with and drive investments in climate vulnerable communities through Community Reinvestment Act regulations.