In a recent shift, the Office of the Comptroller of the Currency (OCC) has officially ended its climate risk guidance for large U.S. banks. The 2021 guidance called on major banks to incorporate climate-related risks into their risk management processes, focusing on both physical and transition risks. As we continue navigating the evolving landscape of financial regulation, the broader implications of climate risks will remain a key discussion point for the financial sector.
OCC Withdraws Principles for Climate-Related Financial Risk Management for Large Financial Institutions WASHINGTON—The Office of the Comptroller of the Currency (OCC) today withdrew its participation in the interagency principles for climate-related financial risk management for large financial institutions. “The principles providing guidance to banks for climate-related financial risk are overly burdensome and duplicative. The OCC’s existing guidance for banks to maintain a sound risk management framework applies to all activities conducted by supervised institutions and includes potential exposures to severe weather events or natural disasters,” said Acting Comptroller of the Currency Rodney E. Hood. “I will continue to look for appropriate opportunities to calibrate regulatory requirements to be effective, not excessive, while ensuring the safety, soundness and fairness of the federal banking system.”
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