On March 30, 2022, the FDIC issued a request for public comment on draft principles that would provide a high-level framework for the safe and sound management of exposures to climate-related financial risks. The draft principles are intended for the largest financial institutions, those with over $100 billion in total consolidated assets.
According to the FDIC, the draft principles were developed to support efforts by large financial institutions to focus on key aspects of climate-related financial risk management. It aims to help financial institution management make progress toward addressing key questions as they consider incorporating climate-related financial risks into their institutions’ risk management frameworks. The key areas that institutions need to consider include:
Governance;
Policies, Procedures, and Limits;
Strategic Planning;
Risk Management;
Data, Risk Measurement, and Reporting; and
Scenario Analysis.
The FDIC will accept comments from all interested parties within 60 days of publication in the Federal Register.
Read the FDIC’s full announcement here.
The full request for comment can be found here.
