OCC’s Hsu: Climate Risk Management Guidance Expected by Year-End

Acting Comptroller of the Currency Michael Hsu signaled that his agency is working to develop “high-level climate risk management supervisory expectations for large banks” and that he expects to issue framework guidance for comment “by the end of the year.”

Hsu’s statement came in response to a declaration issued by the Network for Greening the Financial System—of which OCC is a member—on its ongoing approach to managing climate-related risks.

The Federal Reserve—which is also an NGFS member—also issued a statement noting that it will continue to address climate-related risks “in an analytically rigorous, transparent, and collaborative way through our domestic work with other federal agencies including the Financial Stability Oversight Council; our international engagement through the Financial Stability Board, the Basel Committee on Banking Supervision, and the NGFS; and through our broad and transparent engagement with the private sector.”