On October 16, the Fed, FDIC and OCC issued a joint notice immediately withdrawing their interagency guidance titled “Principles for Climate-Related Financial Risk Management for Large Financial Institutions.” The notice was originally issued in October 2023 (previously covered by InfoBytes here). The agencies noted that they did not believe these principles were necessary and expressed concern that such principles could “distract” from managing other potential risks.

The notice stated that the guidance was unnecessary because safety and soundness standards already required that all supervised institutions weigh and “appropriately address all material risks in their operating environment” — tailored to their “size, complexity, and risk” — and be resilient to a range of risks, including emerging ones. The rescission took effect immediately upon the notice’s publication on October 16.