0 votes
asked ago by (52.2k points)
May 2 -- Office of the Comptroller of the Currency (OCC), Treasury, invites comments to OMB by June 1, 2022 regarding the renewal of its Climate Risk Range of Practice Questionnaire.

The OCC is conducting a climate risk range of practice among large banks with the purpose of developing an understanding of climate risk management practices, specifically as they pertain to climate-related financial risk. Climate risks can have a material impact on the financial system by damaging property, impeding business activity, shifting the values of assets, and affecting incomes. Banks are exposed to both physical risks and transition risks presented by climate change, which may impact the safety and soundness of supervised institutions.

The OCC is collecting the information through the range of practice to understand the financial risks and ensure the establishment of sound risk management frameworks to measure, monitor, and control risks presented by climate change. The agency understands that some banks are working to incorporate climate-related financial risks into their existing risk management frameworks and business strategies. The OCC also recognizes that banks' exposure to climate-related financial risks and their climate risk management practices may vary substantially based on institutions' size, complexity of operations, geographic footprint, business model, and risk profile. The range of practice will not result in an adequacy assessment as to the banks' current climate risk management program. The range of practice will:

Inform the need for clarification or development of necessary supervisory expectations;
Start to establish baseline supervisory knowledge;
Help identify challenges and gaps in risk management frameworks; and
Inform the agency on plans to evolve current practices.

OCC Climate Change webpage: https://www.occ.treas.gov/topics/supervision-and-examination/climate/index-climate.html
Submission to OMB: https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202204-1557-004 Click IC List for data collection instruments, View Supporting Statement for technical documentation. Submit comments through this site.
FRN: https://www.federalregister.gov/d/2022-09336

For AEA members wishing to submit comments to OMB, the AEA Committee on Economic Statistics offers "A Primer on How to Respond to Calls for Comment on Federal Data Collections" at https://www.aeaweb.org/content/file?id=5806

Please log in or register to answer this question.