FDIC to big banks: It's the climate, stupid
The message wasn't quite so blunt, but there was a measure of "duh" in the proposed guidance that the Federal Deposit Insurance Corporation published yesterday, which calls on banks to assess and disclose basic climate risks.
- The measure comes on the heels of the SEC's 3-1 vote on March 21 to issue new proposed rules for financial institutions on climate disclosures.
Why it matters: FDIC is telling large banks to consider the physical impacts of climate change, as well as governance measures and how the institutions might be affected by the energy transition.
The details: The guidelines would apply to banks with more than $100 billion of assets — many of which are continuing to bankroll projects that are driving climate change, even as they tout their supposed green credentials.
Of note: The move by FDIC leaves only the Federal Reserve as the last major U.S. banking regulator that hasn't issued guidance on climate change.