Climate action
-
The Fed acknowledged climate risk in its financial stability report to Congress and in numerous speeches by governors.
-
Jerome Powell has committed to issue supervisory guidance on climate risk – while draft guidance has already been published by the Office for the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC).
-
The Fed established a new Supervision Climate Committee and announced a Financial Stability Climate Committee to advise the Board of Governors on how to address climate risk.
-
The Fed encouraged investment in renewable energy and climate resilience activities as part of the Community Reinvestment Act.
Climate inaction
-
Neither the Fed nor other regulators have yet confirmed when they will carry out climate risk exams, or climate stress tests.
-
Although the OCC and FDIC have published draft guidance on climate risk, this is not currently set to apply to all banks.
-
No senior Fed official has acknowledged the financial risks posed by nature los.