Treasury’s Currency Office Floats First Climate Risk Guidance For Banks

The Office of the Comptroller of the Currency (OCC) is issuing draft supervisory guidance for banks regarding climate-related financial risks, the first such guidance from a financial regulator that environmental groups are embracing as a key step toward broader standards for the sector. The draft guidance , released Dec. 16, provides banks a “high-level framework” for how to incorporate climate risks into existing risk considerations, the agency says, while also underscoring the potential adverse effects should banks fail to do...