The U.S. Federal Reserve trails other major central banks in tackling climate change, even as President Joe Biden pledges a “whole of government” approach and fights to salvage his ambitious climate agenda as global leaders meet in Glasgow to hash out responses to rising world temperatures.

In recent years the Fed has only begun to look at how changing weather patterns impact its ability to do its job, which includes safeguarding the financial system through bank regulation, and combating economic shocks through monetary policy.

And while it is devoting more effort to studying climate-related impacts, it treats climate risk as just another element that affects the economic and financial landscape, like trade or childcare policy, rather than as anything the Fed might try to shape.

That puts it well behind its peers who are gearing up to buy green assets, crack down on fossil-fuel lending, and push companies toward lower-carbon choices.

The hesitance to prioritize action on climate risk at the world’s most powerful central bank will have consequences, analysts and activists say, not just for the U.S. economy but for a global financial system whose largest actors are in New York.

“If [the U.S.] are laggards, it won’t be good for our markets, it won’t be good for our companies,” said Sanjay Patnaik, a Brookings Institution fellow specializing in climate policies. “The U.S. doesn’t want to fall behind, or our financial system will be more vulnerable to climate risk.”