The OCC, FDIC, and FRB have jointly issued final interagency Principles for Climate-Related Financial Risk Management. These principles are for Large Financial Institutions (over $100 billion assets) and provide “a high-level framework for the safe and sound management of exposures to climate-related financial risks.”
Most agree this is a step in the right direction toward managing climate risk and transitioning the financial sector into a lower carbon economy. However, the Principles are only guidance and many industry actors are calling for more prescriptive rules to drive real decarbonization. In the OCC’s Spring 2023 Semi-annual Risk Perspective report, the agency concluded that “large banks overall have significant additional work to do to move [climate-related financial risk management] programs to maturity.” Large financial institutions should leverage the final Principles to close the gaps identified in the OCC observations of large banks’ management of climate risk to foster more robust and proactive risk management frameworks.
Key takeaways from the Principles:
Related Insights

Four steps to building a firmer risk framework
What steps does an organisation need to take to evolve its risk framework? We share four key areas to focus on to build a firmer risk management framework.
Read more
The critical role of frameworks in unlocking transition finance without unleashing greenwashing
Financial institutions need to focus on enablers, developing their own transition finance frameworks. How can they do this as effectively to mobilise capital to the transition whilst avoiding greenwashing?
Read more
Navigating payments innovation
While new products, technologies and partnerships are being introduced at a pace never seen before, the financial services industry isn’t yet aligned on which payments innovations to invest in.
Read more
The case for investing in energy efficiency for real estate
The drive for greater energy efficiency in real estate is rapidly gathering momentum. It is a pivotal moment for financial institutions to profit from the energy transition while building a stronger society and economy.
Read moreRelated Case Studies

Supporting reluctant customers to become a digital-first insurer
How did a leading healthcare cover provider overcome initial resistance from customers to encourage them to embrace new digital channels?
Read more
Leading the operational transformation that made a £4 billion insurance deal possible
How did an insurer cut through the complications of one of the biggest carve-outs in recent history to emerge stronger and better equipped for the future?
Read more
Building world-leading climate risk modelling software
How do you help the world’s biggest companies to understand their climate risks?
Read more
Delivering regulatory change for UK building society
How can a UK building society deliver regulatory change while ensuring a great customer experience?
Read more