The federal bank regulatory agencies today announced the withdrawal of interagency Principles for Climate-Related Financial Risk Management for Large Financial Institutions.
The agencies do not believe principles for managing climate-related financial risk are necessary because the agencies' existing safety and soundness standards require all supervised institutions to have effective risk management commensurate with their size, complexity, and activities. In addition, all supervised institutions are expected to consider and appropriately address all material financial risks and should be resilient to a range of risks, including emerging risks.
The interagency principles were previously issued jointly by the agencies in October 2023. The notice, which will be issued in the Federal Register, rescinds these principles effective immediately. The OCC withdrew its participation in the principles earlier this year.
