OCC Bulletin 2025-34 | October 16, 2025

Risk Management: Rescission of Principles for Climate-Related Financial Risk Management for Large Financial Institutions

To

Chief Executive Officers of All National Banks, Federal Savings Associations, and Federal Branches and Agencies; Department and Division Heads; All Examining Personnel; and Other Interested Parties

Summary

The Office of the Comptroller of the Currency (OCC), Board of Governors of the Federal Reserve System (Federal Reserve Board), and Federal Deposit Insurance Corporation (collectively, the agencies) today announced that they are rescinding the October 30, 2023, Principles for Climate-Related Financial Risk Management (principles). The principles were intended for financial institutions with more than $100 billion in total consolidated assets. On March 31, 2025, the OCC withdrew its participation in the principles.

Note for Community Banks

The principles did not apply to community banks.

Highlights

The agencies are publishing an interagency Federal Register notice that rescinds the principles.
Institutions are expected to maintain effective risk management policies commensurate with the size, complexity, and risk of their activities and to appropriately address all material risks in their operating environment.

Background

The agencies’ existing safety and soundness standards require all insured depository institutions to have effective risk management processes commensurate with the size, complexity, and risk of their activities. In addition, financial institutions of all sizes are expected to consider and appropriately address all material risks in their operating environment and should be resilient to a range of risks, including emerging risks. The agencies do not believe principles for the management of climate-related financial risk are necessary and are concerned that such principles could distract from the management of other potential risks identified and addressed by financial institutions’ existing risk management processes and the agencies’ other risk management rules and guidance. Therefore, the principles are rescinded.

Further Information

Please contact Russell D’Costa, Program Analyst, Office of the Chief National Bank Examiner, at (202) 649-8283; Melissa Love-Greenfield, Deputy Comptroller for Compliance and Operational Risk, Office of the Chief National Bank Examiner, at (202) 649-6175; or Madelyn Tynan, Counsel, Chief Counsel’s Office, at (202) 649-5490.

James M. Gallagher
Senior Deputy Comptroller and Chief National Bank Examiner