Notice2025-20213

Rescission of Principles for Climate-Related Financial Risk Management for Large Financial Institutions

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
November 18, 2025

Issuing agencies

Treasury DepartmentComptroller of the CurrencyFederal Reserve SystemFederal Deposit Insurance Corporation

Abstract

The Office of the Comptroller of the Currency, Treasury (OCC), the Board of Governors of the Federal Reserve System (Board), and the Federal Deposit Insurance Corporation (FDIC) (collectively, the agencies) are rescinding the interagency Principles for Climate-Related Financial Risk Management for Large Financial Institutions.

Full Text

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<title>Federal Register, Volume 90 Issue 220 (Tuesday, November 18, 2025)</title>
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[Federal Register Volume 90, Number 220 (Tuesday, November 18, 2025)]
[Notices]
[Pages 51756-51757]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-20213]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

[Docket ID OCC-2022-0023]

FEDERAL RESERVE SYSTEM

[Docket No. OP-1793]

FEDERAL DEPOSIT INSURANCE CORPORATION

RIN 3064-ZA32


Rescission of Principles for Climate-Related Financial Risk 
Management for Large Financial Institutions

AGENCY: Office of the Comptroller of the Currency, Treasury, Board of 
Governors of the Federal Reserve System, and Federal Deposit Insurance 
Corporation.

ACTION: Rescission of final interagency guidance.

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SUMMARY: The Office of the Comptroller of the Currency, Treasury (OCC), 
the Board of Governors of the Federal Reserve System (Board), and the 
Federal Deposit Insurance Corporation (FDIC) (collectively, the 
agencies) are rescinding the interagency Principles for Climate-Related 
Financial Risk Management for Large Financial Institutions.

DATES: The interagency guidance published at 88 FR 74183 (October 30, 
2023) is rescinded as of November 18, 2025.

FOR FURTHER INFORMATION CONTACT: 
    OCC: Russell D'Costa, Program Analyst, Office of the Chief National 
Bank Examiner, (202) 649-8283; Melissa Love-Greenfield, Deputy 
Comptroller for Systemic Risk Identification and Support, Office of the 
Chief National Bank Examiner; Madelyn Tynan, Counsel, Chief Counsel's 
Office, (202) 649-5490, Office of the Comptroller of the Currency, 400 
7th Street SW, Washington, DC 20219. If you are deaf, hard of hearing, 
or have a speech disability, please dial 7-1-1 to access 
telecommunications relay services.
    Board: Anna Lee Hewko, Associate Director, (202) 250-1577, Division 
of Supervision and Regulation; Asad Kudiya, Associate General Counsel, 
(202) 475-6358, Legal Division, Board of Governors of the Federal 
Reserve System, 20th Street and Constitution Avenue NW, Washington, DC 
20551.
    FDIC: Andrew Carayiannis, Chief, Policy and Risk Analytics Section; 
Lauren Brown, Senior Policy Analyst, Capital Markets and Accounting 
Policy Branch, Division of Risk Management Supervision; Karlyn Hunter, 
Counsel, Legal Division; (202) 898-6888; Federal Deposit Insurance 
Corporation, 3701 Fairfax Drive, Arlington, VA 22203.

SUPPLEMENTARY INFORMATION:

I. Background

    On October 30, 2023, after issuing separate requests for 
comment,\1\ the agencies jointly issued Principles for Climate-Related 
Financial Risk Management (principles).\2\ These principles were 
intended for financial institutions \3\ with over $100 billion in total 
consolidated assets. On March 31, 2025, the OCC withdrew its 
participation in the principles.\4\
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    \1\ OCC Bulletin 2021-62, Risk Management: Principles for 
Climate-Related Financial Risk Management for Large Banks; Request 
for Feedback, (December 16, 2021); FDIC, Request for Comment on a 
Statement of Principles for Climate-Related Financial Risk 
Management for Large Financial Institutions, 87 FR 19507 (April 4, 
2022); Board, Principles for Climate-Related Financial Risk 
Management for Large Financial Institutions, 87 FR 75267 (December 
8, 2022).
    \2\ 88 FR 74183 (October 30, 2023).
    \3\ In this issuance, the term ``financial institution'' or 
``institution'' includes national banks, Federal savings 
associations, U.S. branches and agencies of foreign banks, state 
nonmember banks, state savings associations, state member banks, 
bank holding companies, savings and loan holding companies, 
intermediate holding companies, foreign banking organizations with 
respect to their U.S. operations, and non-bank systemically 
important financial institutions (SIFIs) supervised by the Board.
    \4\ OCC Withdraws Principles for Climate-Related Financial Risk 
Management for Large Financial Institutions, News Release 2025-27 
(March 31, 2025).
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II. Rescission of Guidance

    The agencies' existing safety and soundness standards require all 
insured depository institutions to have effective risk management 
processes commensurate with the size, complexity and risk of their 
activities.\5\ In addition, financial institutions of all sizes are 
expected to consider and appropriately address all material risks in 
their operating environment and should be resilient to a range of 
risks, including emerging risks.\6\ The agencies do not believe 
principles for the management of climate-related financial risk are 
necessary and are concerned that such

[[Page 51757]]

principles could distract from the management of other potential risks 
identified and addressed by financial institutions' existing risk 
management processes and the agencies' other risk management rules and 
guidance.\7\ Therefore, the principles are rescinded.
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    \5\ Section 39 of the Federal Deposit Insurance Act, 12 U.S.C. 
1831p-1, requires the FDIC, Board, and OCC to prescribe safety and 
soundness standards for insured depository institutions. Such 
standards were implemented by rule in 12 CFR part 364, appendix A 
(FDIC), 12 CFR part 208, appendix D-1 (Board), and 12 CFR part 30, 
appendix A (OCC). These guidelines address, among other things, 
operational and managerial standards relating to (1) internal 
controls, information systems and internal audit systems; (2) loan 
documentation; (3) credit underwriting; and (4) interest rate risk 
exposure.
    \6\ See, e.g., SR Letter 95-51 (as revised June 23, 2025); SR 
Letter 21-3 (February 26, 2021); OCC Comptroller's Handbook, Bank 
Supervision Process; FDIC Risk Management Manual of Examination 
Policies, Section 4.1 Management.
    \7\ Neither the principles nor this rescission requires or 
prohibits financial institutions' consideration of any particular 
risk or set of risks, nor do they create any rights or obligations 
for financial institutions.
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III. Administrative Law Matters

A. Executive Order 12866

    Pursuant to section 3(f) of Executive Order 12866, the Office of 
Information and Regulatory Affairs within the Office of Management and 
Budget (OMB) has determined that the rescission is a ``significant 
regulatory action.''

B. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521) (PRA) 
states that no agency may conduct or sponsor, nor is the respondent 
required to respond to, an information collection unless it displays a 
currently valid OMB control number.
    The rescission does not create any new, or revise any existing, 
collections of information under the PRA. Therefore, no information 
collection request will be submitted to the OMB for review.

Jonathan V. Gould,
Comptroller of the Currency.

    By order of the Board of Governors of the Federal Reserve 
System.
Benjamin W. McDonough,
Deputy Secretary of the Board.

Federal Deposit Insurance Corporation.

    By order of the Board of Directors.

    Dated at Washington, DC on September 25, 2025.
Jennifer M. Jones,
Deputy Executive Secretary.
[FR Doc. 2025-20213 Filed 11-17-25; 8:45 am]
BILLING CODE 6210-01-P; 4810-33-P; 6714-01-P


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Indexed from Federal Register on November 18, 2025.

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