U.S. Fed proposes framework for how banks manage climate-related financial risk

The U.S. Federal Reserve on Friday proposed new guidance for how large banking institutions manage climate-related financial risks, in line with proposals from other key financial regulators.

The proposed principles detailed expectations for banks with more than $100 billion in assets to incorporate financial risks related to climate into their strategic planning. Issuance of the proposal for public comment was approved in a 6-1 vote of the Fed Board of Governors, with Governor Christopher Waller dissenting.