We welcome the work on the principles for climate-related financial risk management by the FDIC, which recognizes the challenges faced by financial institutions and supervisors alike in this area.
However, our feedback outlines that principles-based guidance for supervisors and financial institutions will not be sufficient to achieve timely and impactful outcomes in managing climate-related financial risks of financial institutions
Further measures are needed based on a precautionary approach to tackling these risks, which can and should be done as part of a holistic review of prudential regulation for financial institutions.
Detailed points on addressing climate-related financial risks can be found in our recent report “A silver bullet against green swans”.
