Comments due on FDIC climate risks management principles

The FDIC has requested 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, which are intended for the largest financial institutions, those with over $100 billion in total consolidated assets, were developed to support efforts underway by large financial institutions to consider key aspects of climate-related financial risk management.

The draft principles will 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 FDIC encourages financial institutions to consider climate-related financial risks in a manner that allows them to continue to prudently meet the financial services needs of their communities.

Comments will be accepted from all interested parties for 60 days following publication in the Federal Register. The FDIC notes that its request for comment is substantially similar to one issued by the OCC on December 16, 2021.

PUBLICATION AND COMMENT PERIOD UPDATE: Published at 87 FR 19507 on 4/4/2022, with a comment period ending in 60 days, on 6/3/2022)