Press Statement

STATEMENT: CAP Applauds OCC Climate Guidance

Washington, D.C. — Yesterday, Acting Comptroller of the Currency Michael Hsu released climate guidance that detailed, for the first time, expectations for how large banks may address climate-related financial risks.

In response, Todd Phillips, director of Financial Regulatory and Corporate Governance at the Center for American Progress, said:

I applaud Acting Comptroller Hsu on fulfilling his pledge to release climate risk management principles for large banks that are supervised by the Office of the Comptroller of the Currency (OCC). As the first U.S. banking regulator to issue climate supervisory guidance, Comptroller Hsu has taken an important, necessary step forward to protect individual banks and our broader financial system. 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.

As an ex officio member of the Board of Directors of the Federal Deposit Insurance Corporation (FDIC), Comptroller Hsu must work with other directors to adopt this guidance for FDIC-supervised institutions.

In September, CAP joined with other organizations to call on banking regulators to adopt climate guidance.

For more information on this topic or to speak to an expert, contact Julia Cusick at jcusick@americanprogress.org.