Washington, D.C. — Today, the Federal Deposit Insurance Corporation (FDIC) released draft climate guidance that detailed expectations for how large banks may address climate-related financial risks.
In response, Todd Phillips, director of Financial Regulation and Corporate Governance at the Center for American Progress, issued the following statement:
I applaud Acting Chair Martin J. Gruenberg and the rest of the FDIC board on releasing draft climate risk management principles for large banks that it supervises. Chair Gruenberg has taken an important, necessary step forward to protect individual banks and our broader financial system from the risks of climate change. Climate change poses significant safety and soundness concerns, and banks must understand the risks their institutions face. I look forward to responding to the document’s request for feedback.
The Federal Reserve is now the only banking regulator that has yet to release guidance related to banks’ climate-related risks. I encourage it to issue similar climate guidance promptly to ensure that all large banks within the United States understand the risks they face from climate change.
In September 2021, CAP joined with other organizations to call on banking regulators to adopt climate guidance. In February 2022, CAP filed a comment letter responding to a similar request for information from the Office of the Comptroller of the Currency.
For more information or to speak with an expert, contact Julia Cusick at [email protected].