• Latest
  • Trending
  • All
  • Industry
  • Compliance
  • Global Trade
  • Industry
  • Sustainability & Ethics
  • Video
  • Security & Risk
Stylus pointing at financial charts on tablet, illustrating climate-related financial risk management. - Supply Chain News

Regulatory Agencies Release Principles for Managing Climate-Related Financial Risks in Large Financial Institutions

10/24/2023
ATLANTIS LOGISTICS (DRC) SARL Strengthens DRC’s Position in Global Trade Through Reliable Logistics Solutions

ATLANTIS LOGISTICS (DRC) SARL Strengthens DRC’s Position in Global Trade Through Reliable Logistics Solutions

07/30/2025
Trezix: Transforming Global Trade with AI-Driven Orchestration

Trezix Software Pvt Ltd Nominated for Go Global Awards 2025

07/30/2025
Trezix: Transforming Global Trade with AI-Driven Orchestration

Trezix: Transforming Global Trade with AI-Driven Orchestration

07/30/2025
U.S. and China Conclude Stockholm Talks as Tariff Pause Remains in Effect

U.S. and China Conclude Stockholm Talks as Tariff Pause Remains in Effect

07/30/2025
DTI Sees Tariff Adjustment as Positive Step for Philippines

DTI Sees Tariff Adjustment as Positive Step for Philippines

07/30/2025
Charts and graphs showing business items and U.S. tariff shifts. - Supply Chain News

Analysts Monitor U.S. Tariff Shifts Amid Trade Talks

07/30/2025
Wall Street Eases Concerns as U.S. Tariff Levels Stabilize Below Expectations

Wall Street Eases Concerns as U.S. Tariff Levels Stabilize Below Expectations

07/30/2025
Trump Proposes Global Baseline Tariff Rate of 15–20 Percent

Trump Proposes Global Baseline Tariff Rate of 15–20 Percent

07/30/2025
1FC Invest Enterprises Nominated for Go Global Awards 2025

1FC Invest Enterprises Expands Financial Inclusion Across India with Tech-Driven Legacy Planning Solutions

07/29/2025
1FC Invest Enterprises Nominated for Go Global Awards 2025

1FC Invest Enterprises Nominated for Go Global Awards 2025

07/29/2025
M.A.R.S.A.T S.A: Advancing Romania’s Energy Infrastructure with Turnkey Engineering Solutions

M.A.R.S.A.T S.A. Nominated for the Go Global Awards 2025

07/29/2025
M.A.R.S.A.T S.A: Advancing Romania’s Energy Infrastructure with Turnkey Engineering Solutions

M.A.R.S.A.T S.A: Advancing Romania’s Energy Infrastructure with Turnkey Engineering Solutions

07/29/2025
supplychainreport
Thursday, July 31, 2025
  • Home
  • Industry
    • Supply Chain
    • Logistics & Transportation
    • Importing & Exporting
    • Manufacturing
    • Warehousing & Distribution
  • Compliance
    • Supply Chain Transparency
    • Anti-Money Laundering (AML)
    • Know Your Customer (KYC)
    • Risk Management
    • Export Controls
    • Sanctions
  • Global Trade
    • Market Trends
    • Economic Indicators
    • Sourcing
    • Trade Policies
    • International Relations
    • Trade Agreements
    • Tariffs & Duties
    • Import/Export Statistics
  • Luxury Goods
  • Industry
    • Blockchain in Supply Chain
    • Importing & Exporting
    • Automation & Robotics
    • Artificial Intelligence in Trade
    • Data & Analytics
  • Sustainability & Ethics
    • Green Supply Chains
    • Sustainable Logistics
    • Ethical Sourcing
    • Corporate Social Responsibility
    • Environmental Policies
  • Security & Risk
    • Cybersecurity in Trade
    • Fraud & Scams
    • Risk Mitigation
    • Security Protocols
    • Data Protection
  • ITC News
    • ITC Featured Members
    • ITC Business Councils Highlights
  • Events
    • Upcoming Conferences
    • Upcoming FREE Educational Webinars
No Result
View All Result
supplychainreport
No Result
View All Result

Regulatory Agencies Release Principles for Managing Climate-Related Financial Risks in Large Financial Institutions

by Richie
10/24/2023
in Compliance, Risk Management

Federal bank regulatory agencies have collaboratively introduced a set of principles aimed at guiding large financial institutions in effectively managing climate-related financial risks. These principles, which align with the existing risk management framework provided by regulatory agencies, are intended to assist financial institutions with total assets exceeding $100 billion. In this article, we will explore the key components of these principles and their implications for the financial industry.

Understanding the Climate-Related Financial Risk Principles

YOU MAY ALSO LIKE

Trezix Software Pvt Ltd Nominated for Go Global Awards 2025

Trezix: Transforming Global Trade with AI-Driven Orchestration

The principles outlined by regulatory agencies offer a structured approach to the management of climate-related financial risks, encompassing both physical risks associated with direct climate impacts and transition risks linked to the transition towards a low-carbon economy. Here are the main highlights of these principles:

1. Target Audience: The principles primarily target the largest financial institutions, specifically those with total assets exceeding $100 billion.

2. Risk Categories: The principles address two main categories of climate-related financial risks: physical risks (directly related to climate change’s impact) and transition risks (associated with the shift towards a low-carbon economy).

3. Governance: Financial institutions are expected to establish robust governance structures that facilitate effective management of climate risk. This includes clearly defining roles and responsibilities at the board and management levels.

4. Policies, Procedures, and Limits: The principles stress the importance of having well-defined and comprehensive policies, procedures, and limits to effectively manage climate-related financial risks.

5. Strategic Planning: Institutions should integrate climate-related financial risks into their strategic planning processes, aligning business strategies with risk management practices.

6. Risk Management: The principles encourage a proactive approach to risk management, with institutions being urged to identify, assess, and mitigate climate-related financial risks.

7. Data, Risk Measurement, and Reporting: Financial institutions are required to establish robust data collection and reporting mechanisms to accurately monitor and measure climate-related financial risks.

8. Scenario Analysis: Scenario analysis is highlighted as a valuable tool for assessing and addressing climate-related financial risks. It enables institutions to anticipate and prepare for various climate-related scenarios.

Integration with Traditional Risk Areas: The principles emphasize the need to integrate climate-related financial risk management into traditional risk categories such as credit, market, liquidity, operational, and legal risks.

No Prohibition on Banking Services: Importantly, the final principles clarify that they neither prohibit nor discourage large financial institutions from providing banking services to customers of any specific class or type, as long as these services comply with relevant laws and regulations.

These principles provide a comprehensive framework for managing climate-related financial risks within large financial institutions. By focusing on governance, policies, strategic planning, risk management, data analysis, and scenario planning, these guidelines aim to enhance the industry’s preparedness for climate-related challenges.

It is important to note that these principles are intended to support, rather than restrict, the activities of large financial institutions. They acknowledge the institutions’ discretion in providing banking services to various customer segments, provided that all legal and regulatory requirements are met.

As climate change continues to be a critical global issue, financial institutions are encouraged to incorporate these principles into their risk management practices to ensure the safe and sound management of climate-related financial risks.

Stay current with supply chain report news at The Supply Chain Report. For international trade tools, see ADAMftd.com.

#ClimateRiskManagement #FinancialInstitutions #ClimateRiskPrinciples #RegulatoryAgencies #FinancialRisk #LowCarbonEconomy #ClimateChange #GovernanceInBanking #RiskManagement #StrategicPlanning #FinancialInstitutions #ClimateScenarioAnalysis #SustainableFinance #RiskAssessment #GreenFinance #FinancialGovernance #ClimateTransition #LargeFinancialInstitutions #BankingServices #ClimateImpact #RegulatoryCompliance #BankingRisks

ShareTweet

Subscribe Our Newsletter

Share Your News

Whether it’s a groundbreaking achievement, a heartwarming tale, or an insightful perspective, we want to hear it. Share your news with us, and let’s amplify your voice in the digital symphony of stories.

Submit

A man is riding a bike on a hill.

The Supply Chain Report is your essential daily news website, serving as a trusted source for comprehensive coverage of the complex and ever-evolving global supply chain dynamics. Our expert team delves into the intricacies of international trade, manufacturing, logistics, importing, exporting, and supply chain management; providing in-depth analysis and up-to-date news on the latest trends, disruptions, and technological advancements affecting industries worldwide. From detailed reports on international trade through to insights into procurement strategies and inventory management, we offer valuable content that helps professionals stay informed and make knowledgeable decisions in a fast-paced market.

Each day, we bring you cutting-edge news and expert commentary that dissect significant international trade and supply chain issues Our coverage spans a wide array of sectors including manufacturing, retail, healthcare, food, consumer goods, and technology, ensuring that no matter your field, you have the strategic information needed to navigate the challenges and opportunities of today’s supply chain landscape. By synthesizing complex data and presenting actionable insights, The Supply Chain Report empowers business leaders, policymakers, and logistics professionals to optimize their operations and drive forward with confidence in an interconnected world.

Connect With Us

  • About
  • Events
  • Privacy Policy
  • Contact Us

© 2024 International Centre for Trade Transparency Limited. Incorporated in the United Kingdom.

No Result
View All Result
  • Home
  • Industry
    • Supply Chain
    • Logistics & Transportation
    • Importing & Exporting
    • Manufacturing
    • Warehousing & Distribution
  • Compliance
    • Supply Chain Transparency
    • Anti-Money Laundering (AML)
    • Know Your Customer (KYC)
    • Risk Management
    • Export Controls
    • Sanctions
  • Global Trade
    • Market Trends
    • Economic Indicators
    • Sourcing
    • Trade Policies
    • International Relations
    • Trade Agreements
    • Tariffs & Duties
    • Import/Export Statistics
  • Luxury Goods
  • Industry
    • Blockchain in Supply Chain
    • Importing & Exporting
    • Automation & Robotics
    • Artificial Intelligence in Trade
    • Data & Analytics
  • Sustainability & Ethics
    • Green Supply Chains
    • Sustainable Logistics
    • Ethical Sourcing
    • Corporate Social Responsibility
    • Environmental Policies
  • Security & Risk
    • Cybersecurity in Trade
    • Fraud & Scams
    • Risk Mitigation
    • Security Protocols
    • Data Protection
  • ITC News
    • ITC Featured Members
    • ITC Business Councils Highlights
  • Events
    • Upcoming Conferences
    • Upcoming FREE Educational Webinars

© 2024 International Centre for Trade Transparency Limited. Incorporated in the United Kingdom.