Federal Deposit Insurance Corporation

Draft Guidance for the Management of Climate-Related Financial Risks

On April 1, 2022, the Federal Deposit Insurance Corporation (FDIC) published its draft “Statement of Principles for Climate-Related Financial Management for Large Financial Institutions.” The document contains draft principles for the management of exposures to climate-related financial risks for the largest financial institutions (defined as those with over $100 billion in total consolidated assets). The document includes general principles pertaining to 1) governance; 2) policies, procedures, and limits; 3) strategic planning; 4) risk management; 5) data, risk measurement, and reporting; and 6) scenario analysis.