Federal Deposit Insurance Corporation

Note: On January 20, 2025, President Trump issued a memorandum instituting a regulatory freeze, preventing agencies from issuing proposals or rules pending review by Trump-appointed agency heads. On January 31, 2025, President Trump issued Executive Order 14192, directing agencies to identify 10 existing regulations to eliminate for each new regulation they promulgate.

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On January 21, 2025, the FDIC announced that it has withdrawn from the Network of Central Banks and Supervisors for Greening the Financial System (NGFS) effective immediately, claiming “the work of NGFS is not within the FDIC’s authorities and mandate.”

Second Trump Administration (2025-2028)

On January 21, 2025, the FDIC announced that it has withdrawn from the Network of Central Banks and Supervisors for Greening the Financial System (NGFS) effective immediately, claiming “the work of NGFS is not within the FDIC’s authorities and mandate.”

Biden Administration (2021-2024)

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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