The FDIC Board is considering today, jointly with the Board of Governors of the Federal Reserve and the Comptroller of the Currency, guidance on Principles for Climate–Related Financial Risk Management for Large Financial Institutions. They are intended to support efforts by large financial institutions to focus on key aspects of climate–related financial risk management. Climate–related financial risks pose a clear and significant risk to the U.S. financial system. Financial institutions should fully consider climate–related financial risks—as they do all other risks—and continue to take a risk–based approach in assessing individual credit and investment decisions. It is also important for the federal banking agencies to promote consistency in climate–related financial risk management.

Source: Wall Street Journal October 24, 2023 21:05 UTC