For Immediate Release:
Dec. 16, 2021
OCC Seeks Input on Climate Risk Management for Large Banks
WASHINGTON, D.C. — Americans for Financial Reform Education Fund (AFREF) applauds the Office of the Comptroller of the Currency (OCC) for seeking comment on this strong first draft of principles to guide large banks on how to manage the risk that climate change poses to their safety and soundness. We look forward to submitting detailed comments on the proposal, and we thank Acting Comptroller Michael Hsu for his leadership.
“This draft guidance for large banks represents a critical initial step in getting banks to manage and mitigate climate risks to their portfolios stemming from acute and chronic climate impacts, as well as the inevitable transition to a cleaner, more resilient economy,” said Alex Martin, senior policy analyst at Americans for Financial Reform. “Importantly, the document explains how climate risk manifests across the traditional risk stripes considered by bank supervisors, and how banks should incorporate climate change into risk management, strategic planning, data collection and disclosure, and scenario analysis. The OCC, the Fed, the NCUA, and the FDIC should move forward quickly on detailed climate supervisory expectations for banks of all sizes. Acting Comptroller Hsu, as an FDIC Board member, should now also move expeditiously to advance climate guidance for that agency as well.”
AFREF and partners released detailed principles for incorporating climate-related risk into banking supervision in September 2021.