OCC Seeks Feedback on Principles for Climate-Related Financial Risk Management for Large Banks

News Release 2021-138 | December 16, 2021

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today requested feedback on draft principles designed to support the identification and management of climate-related financial risks at OCC-regulated institutions with more than $100 billion in total consolidated assets. The OCC will use this feedback to inform any future guidance with respect to climate-related financial risk.

Weaknesses in how banks identify, measure, monitor, and control potential climate-related financial risks could adversely affect banks’ safety and soundness, as well as the overall financial system. The principles provide large banks with a high-level framework for the safe and sound management of exposures to climate-related financial risks consistent with existing OCC rules and guidance.

“Today’s release takes an important, concrete step towards ensuring the safety and soundness of large banks in the face of increasing risks from climate change,” said Acting Comptroller of the Currency Michael J. Hsu. “We look forward to the feedback and to working with our interagency peers to develop more detailed guidance next year.”

Interested parties may submit feedback on the draft principles and the included questions through February 14, 2022.

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