The OCC’s Proposed Principles for Climate Risk Management by Large Banks: Ten Things to Know

The OCC’s Proposed Principles for Climate Risk Management by Large Banks: Ten Things to Know

December 17, 2021, Covington Alert

On December 16, 2021, the Office of the Comptroller of the Currency (“OCC”) issued draft principles (the “Proposal”) on the identification and management of climate-related financial risks by OCC-supervised banks with more than $100 billion in total consolidated assets (“covered banks”). The Proposal is intended to provide a high-level framework for the safe and sound management of climate-related financial risks by covered banks and will serve as the basis for more detailed guidance applicable to all OCC-supervised banks.