On December 16, 2021, the US Office of the Comptroller of the Currency (OCC) released draft principles for managing exposures to climate-related financial risks (Climate Principles). The OCC regulates national banks, federal savings associations, and federal branches and agencies of foreign banking organizations.
The Climate Principles are targeted at banks with
On November 8, 2021, the acting head of the Office of the Comptroller of the Currency (OCC), Michael J. Hsu, issued a call to action on climate change to the boards of directors of OCC-regulated banks. Specifically, he outlined an initial series of climate change-related questions that boards should be asking bank management
On October 21, 2021, the United States Financial Stability Oversight Council (FSOC) released its 133-page report on Climate-Related Financial Risk (Report) and related Factsheet. The Report discusses how climate-related financial risks can implicate financial stability and declares climate-related finance risk as an emerging threat to financial stability. In a new
On April 14, 2021, the Basel Committee on Banking Supervision (BCBS) issued two climate-related reports—one on climate-related risk drivers and their transmission channels and a companion report on measurement methodologies for financial risks. Among the reports’ findings:
Following a unanimous vote on December 7, 2020, the United States Board of Governors of the Federal Reserve System (Board) announced on December 15, 2020, that it has joined the Network of Central Banks and Supervisors for the Greening of the Financial System (Network or NGFS) as a member and, by so doing, joins 83 other members and 13 observers. While the Board had attended NGFS meetings in the past, it was the only major central bank (other than the Reserve Bank of India) to not be a member.
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