Federal Deposit Insurance Corporation

Guidance for the Management of Climate-Related Financial Risks

Alongside other agencies and federal bodies, the Federal Deposit Insurance Corporation ("FDIC") is “responsible for ensuring the safety and soundness of supervised financial institutions, among other responsibilities.” (88 Fed. Reg. 74183, Oct. 30, 2023). Under this authority, FDIC has issued guidance to financial institutions designed to help them assess, manage, and mitigate risks to their stability.

During the Biden Administration, FDIC (alongside the Comptroller of the Currency and the Board of Governors of the Federal Reserve) used this authority to issue guidance addressing “Climate-Related Financial Risk Management Principles for Large Financial Institutions.” All three agencies note that the principles are within the scope of their general authority (In the FDIC’s case, Section 39 of the Federal Deposit Insurance Act) to ensure the safety and soundness of supervised financial institutions.

On October 30, 2023, in partnership with the Department of the Treasury and Federal Reserve System, the FDIC released joint final interagency Principles for Climate-Related Financial Risk Management for Large Financial Institutions. (88 Fed. Reg. 74183, Oct. 30, 2023).

Biden Administration (2021-2025)

Climate-Related Financial Risk Management Principles for Large Financial Institutions

On October 30, 2023, in partnership with the Department of the Treasury and Federal Reserve System, the FDIC released joint final interagency Principles for Climate-Related Financial Risk Management for Large Financial Institutions. (88 Fed. Reg. 74183, Oct. 30, 2023). This guidance is designed to provide a high-level framework for the safe and sound management of exposures to climate-related financial risks. The final issuance follows three separate, but parallel and substantially similar, actions by the agencies seeking comment on draft principles. 

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