,,ii  #aaf? ,,congress  #a/ ,session    
,s4 #bijc  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,novemb] #bj1 #bjai,mr4
 ,s*atz 7= himself1 ,ms4 ,w>r51 ,mr4    
,van ,holl51 ,mr4 ,:iteh\se1 ,mr4       
,b5net1 ,mr4 ,m]kley1 ,mr4 ,book]1 ,ms4 
,klobu*>1 ,ms4 ,h>ris1 & ,mrs4 ,murray7 
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,bank+1 ,h\s+1 & ,urban ,affairs  ,a    
,,bill  ,to require ! ,bo>d ( ,gov]nors 
( ! ,f$]al ,res]ve ,sy/em1 9            
consultation ) ! heads ( o!r relevant   
,f$]al ag5cies1 to develop f9ancial risk
 analyses relat+ to climate *ange1 & =  
o!r purposes4  #a4 ,%ort title ,?is ,act
 may be cit$ z ! ,climate ,*ange        
,f9ancial ,risk ,act ( #bjai4  #b4 ,s5se
 ( congress ,x is ! s5se ( ,congress t--
 7#a7 if curr5t tr5ds cont9ue1 av]age   
global temp]atures are likely to rea*   
#a4e degrees ,celsius above             
pre-indu/rial levels betwe5 #bjcj &     
#bjej2  7#b7 global temp]ature rise has 
already result$ 9 an increas$ numb] (   

heavy ra9/orms1 coa/al flood+ ev5ts1    
heat waves1 wildfires1 & o!r extreme    
ev5ts2  7#c7 s9ce #aihj-- 7,a7 ! numb] (
 extreme wea!r ev5ts p] ye> t co/ ! p ( 
! ,unit$ ,/ates m ?an #a1jjj1jjj1jjj p] 
ev5t1 acc\nt+ = inflation1 has increas$ 
significantly2 &  7,b7 ! total co/ (    
extreme wea!r ev5ts 9 ! ,unit$ ,/ates   
has exce$$ #a1ajj1jjj1jjj1jjj2  7#d7 z  
physical impacts f climate *ange are    
manife/$ across multiple sectors ( !    
economy ( ! ,unit$ ,/ates--  7,a7       
climate-relat$ economic risks w cont9ue 
to increase2  7,b7 climate-relat$       
extreme wea!r ev5ts w disrupt en]gy &   
transportation sy/ems 9 ! ,unit$ ,/ates1
 :i* w result 9 m frequ5t & long]-la/+  
p[] outages1 fuel %ortages1 & s]vice    
disruptions 9 critical sectors across ! 
economy ( ! ,unit$ ,/ates2  7,c7        
project$ increases 9 extreme heat       
conditions w lead to decreases 9 labor  
productivity 9 agriculture1 con/ruction1
 & o!r critical economic sectors2  7,d7 
food & live/ock production w be impact$ 

9 regions t exp]i5ce increases 9 heat & 
dr\ght & small rural communities w      
/ruggle to f9d ! res\rces ne$$ to adapt 
to ^? *anges2 &  7,e7 sea level rise & m
 frequ5t & int5se extreme wea!r ev5ts   
w-- 7i7 increas+ly disrupt & damage     
private prop]ty & critical              
infra/ructure2 &  7ii7 dra/ically       
increase insur$ & un9sur$ losses2  7#e7 
advances 9 en]gy effici5cy & r5ewable   
en]gy te*nologies1 z well z climate     
policies & %ift+ societal pref]5ces1 w--
  7,a7 r$uce global dem& = fossil fuels2
 &  7,b7 expose transition risks =      
fossil fuel companies & inve/ors1 :i*   
c\ld include trillions ( doll>s ( /r&$  
assets ar\nd ! _w2  7#f7 climate *ange  
poses uniquely f>-rea*+ risks to !      
f9ancial s]vices indu/ry1 includ+ )     
respect to und]writ+1 cr$it1 & m>ket    
risks1 due to ! numb] ( sectors &       
locations impact$ & ! pot5tially        
irrev]sible scale ( damage2  7#g7       
f9ancial in/itutions mu/ take a consi/5t
 approa* to assess+ climate-relat$      

f9ancial risks & incorporat+ ^? risks   
into exi/+ risk managem5t practices1 :i*
 %\ld be in=m$ by sc5>io analysis2  7#h7
 ! ,bo>d ( ,gov]nors conducts annual    
assessm5ts ( ! capital adequacy &       
capital plann+ practices ( ! l>ge/ & mo/
 complex bank+ organizations 7ref]r$ to 
9 ?is section z /ress te/s7 9 ord] to   
promote a safe1 s\nd1 & effici5t bank+ &
 f9ancial sy/em2  7#i7 z ( ! date (     
enactm5t ( ?is ,act1 ! /ress te/s       
conduct$ by ! ,bo>d ( ,gov]nors are n   
design$ to reflect ! physical risks or  
transition risks pos$ by climate *ange2 
&  7#aj7 ! ,bo>d ( ,gov]nors-- 7,a7 has 
! au?ority to take into acc\nt !        
pot5tially sy/emic impact (             
climate-relat$ risks on ! f9ancial      
sy/em2 &  7,b7 %\ld develop new         
analytical tools ) long] "t horizons to 
accurately assess & manage ! risks      
describ$ 9 subp>agraph 7,a74  #c4       
,def9itions ,9 ?is ,act3 7#a7 ,bank     
hold+ company ,! t]m bank hold+ company 
has ! mean+ giv5 ! t]m 9 section        

#ajb7;a7 ( ! ,f9ancial ,/ability ,act ( 
#bjaj 7#ab ,u4,s4,c4 #ecaa7;a774  7#b7  
,bo>d ( ,gov]nors ,! t]m ,bo>d (        
,gov]nors means ! ,bo>d ( ,gov]nors ( ! 
,f$]al ,res]ve ,sy/em4  7#c7 ,climate   
sci5ce leads ,! t]m climate sci5ce leads
 means--  7,a7 ! ,adm9i/rator ( !       
,national ,oceanic & ,atmosph]ic        
,adm9i/ration2  7,b7 ! ,adm9i/rator ( ! 
,environm5tal ,protection ,ag5cy2  7,c7 
! ,secret>y ( ,en]gy2  7,d7 !           
,adm9i/rator ( ! ,national ,a]onautics &
 ,space ,adm9i/ration2  7,e7 ! ,director
 ( ! ,unit$ ,/ates ,geological ,survey2 
7,f7 ! ,secret>y ( ! ,int]ior2 &  7,g7 !
 head ( any o!r ,f$]al ag5cy t ! ,bo>d (
 ,gov]nors det]m9es to be appropriate4  
7#d7 ,cov]$ entity ,! t]m cov]$ entity  
means--  7,a7 a nonbank f9ancial company
 or bank hold+ company t has n less ?an 
#bej1jjj1jjj1jjj 9 total consolidat$    
assets2 &  7,b7 a nonbank f9ancial      
company or bank hold+ company-- 7i7 t   
has n less ?an #ajj1jjj1jjj1jjj 9 total 
consolidat$ assets2 &  7ii7 ) respect to

 :i* ! ,bo>d ( ,gov]nors det]m9es !     
application ( subp>agraph 7,c7 ( section
 #afe7;i77#a7 ( ! ,f9ancial ,/ability   
,act ( #bjaj 7#ab ,u4,s4,c4             
#ecfe7;i77#a771 z add$ by section #f (  
?is ,act1 is appropriate--  7,i7 to--   
7aa7 prev5t or mitigate risks to !      
f9ancial /ability ( ! ,unit$ ,/ates2 or 
7bb7 promote ! safety & s\ndness ( !    
company2 &  7,,ii7 aft] tak+ into       
consid]ation--  7aa7 ! capital /ructure1
 risk9ess1 complexity1 f9ancial         
activities1 & size ( ! company1 includ+ 
! f9ancial activities ( any subsidi>y ( 
! company2 &  7bb7 any o!r risk-relat$  
factor t ! ,bo>d ( ,gov]nors det]m9es to
 be appropriate4  7#e7 ,nonbank f9ancial
 company ,! t]m nonbank f9ancial company
 has ! mean+ giv5 ! t]m 9 section       
#ajb7;a77#d77;,c7 ( ! ,f9ancial         
,/ability ,act ( #bjaj 7#ab ,u4,s4,c4   
#ecaa7;a77#d77;,c774  7#f7 ,physical    
risks ,! t]m physical risks means       
f9ancial risks to assets1 locations1    
op]ations1 or value *a9s t result f     

exposure to physical climate-relat$     
effects1 includ+--  7,a7 increas$ av]age
 global temp]atures2  7,b7 increas$     
sev]ity & frequ5cy ( extreme wea!r      
ev5ts2  7,c7 increas$ flood+2  7,d7 sea 
level rise2  7,e7 ocean acidification2  
7,f7 increas$ sev]ity & frequ5cy ( heat 
waves2  7,g7 increas$ frequ5cy (        
wildfires2  7,h7 decreas$ arability (   
f>ml&2 &  7,i7 decreas$ availability (  
fre% wat]4  7#g7 ,te*nical ,developm5t  
,gr\p ,! t]m ,te*nical ,developm5t ,gr\p
 means ! ,climate ,risk ,sc5>io         
,te*nical ,developm5t ,gr\p e/abli%$ "u 
section #d4  7#h7 ,transition risks ,!  
t]m transition risks means f9ancial     
risks t are attributable to climate     
*ange mitigation & adaptation1 includ+  
ef=ts to r$uce gre5h\se gas emissions & 
/r5g!n resili5ce to ! impacts ( climate 
*ange1 includ+--  7,a7 co/s relat+ to-- 
7i7 int]national treaties & agreem5ts2  
7ii7 ,f$]al1 ,/ate1 & local policies2   
7iii7 new te*nologies2  7iv7 *ang+      
m>kets2  7v7 reputational impacts       

relevant to *ang+ consum] behavior2 &   
7vi7 litigation2 &  7,b7 a loss 9 !     
value1 or ! /r&+1 ( assets due to any ( 
! co/s describ$ 9 clauses 7i7 ?r\gh 7vi7
 ( subp>agraph 7,a74  7#i7 ,value *a9 ,!
 t]m value *a9-- 7,a7 means ! total     
lifecycle ( a product or s]vice1 bo?    
be=e & aft] production ( ! product or   
s]vice1 z applicable2 &  7,b7 may       
include ! s\rc+ ( mat]ials1 production1 
& disposal ) respect to ! product or    
s]vice describ$ 9 subp>agraph 7,a74  #d4
 ,climate ,risk ,sc5>io ,te*nical       
,developm5t ,gr\p  7a7 ,e/abli%m5t ,!   
,bo>d ( ,gov]nors %all e/abli% a        
te*nical advisory gr\p to be kn[n z !   
,climate ,risk ,sc5>io ,te*nical        
,developm5t ,gr\p4  7b7 ,memb]%ip  7#a7 
,composition ,! ,te*nical ,developm5t   
,gr\p %all be compos$ ( #aj memb]s--    
7,a7 #e ( :om %all be climate sci5ti/s2 
&  7,b7 #e ( :om %all be economi/s1 )   
exp]tise 9 ei!r ! ,unit$ ,/ates f9ancial
 sy/em or ! risks pos$ by climate *ange4
  7#b7 ,selection ,! ,bo>d ( ,gov]nors  

%all select ! memb]s ( ! ,te*nical      
,developm5t ,gr\p aft] consultation ) ! 
climate sci5ce leads4  7c7 ,duties ,!   
,te*nical ,developm5t ,gr\p %all-- 7#a7 
provide recomm5dations to ! ,bo>d (     
,gov]nors reg>d+ ! developm5t (1 &      
updates to1 ! climate *ange risk sc5>ios
 "u section #e2  7#b7 aft] ! e/abli%m5t 
( ! climate *ange risk sc5>ios "u       
section #e1 det]m9e ! f9ancial &        
economic risks result+ f ^? sc5>ios2    
7#c7 make any f9al "w product & any data
 sets or o!r inputs us$ 9 ! developm5t (
 ! f9al "w product1 publicly available2 
&  7#d7 provide te*nical assi/ance to   
cov]$ entities 9 assess+ physical risks 
or transition risks4  7d7               
,inapplicability ( ,f$]al ,advisory     
,committee ,act ,! ,f$]al ,advisory     
,committee ,act 7#e ,u4,s4,c4 ,app47    
%all n apply ) respect to ! ,te*nical   
,developm5t ,gr\p4  #e4 ,developm5t &   
updat+ ( climate *ange risk sc5>ios  7a7
 ,9 g5]al  7#a7 ,initial developm5t ,n  
lat] ?an #a ye> aft] ! date ( enactm5t (

 ?is ,act1 ! ,bo>d ( ,gov]nors1 9       
coord9ation ) ! climate sci5ce leads1 & 
tak+ into consid]ation ! recomm5dations 
( ! ,te*nical ,developm5t ,gr\p1 %all   
develop #c sep>ate climate *ange risk   
sc5>ios z foll[s3  7,a7 ,"o sc5>io t    
assumes an av]age increase 9 global     
temp]atures ( #a4e degrees ,celsius     
above pre-indu/rial levels4  7,b7 ,"o   
sc5>io t assumes an av]age increase 9   
global temp]atures ( #b degrees ,celsius
 above pre-indu/rial levels4  7,c7 ,"o  
sc5>io t-- 7i7 assumes ! likely & v     
likely av]age increase 9 global         
temp]atures t c be expect$1 tak+ into   
consid]ation ! ext5t to :i* national    
policies & actions relat+ to climate    
*ange h be5 implem5t$1 z ( ! date on :i*
 ! sc5>io is develop$1 or on :i* !      
sc5>io is updat$ "u p>agraph 7#b71 z    
applicable2 &  7ii7 does n take into    
consid]ation commitm5ts = policies &    
actions relat+ to climate *ange t1 z ( !
 applicable date describ$ 9 clause 7i71 
h n be5 implem5t$4  7#b7 ,updates ,aft] 

! initial developm5t ( ! climate *ange  
risk sc5>ios "u p>agraph 7#a71 ! ,bo>d (
 ,gov]nors1 9 coord9ation ) ! climate   
sci5ce leads1 & tak+ into consid]ation !
 recomm5dations ( ! ,te*nical           
,developm5t ,gr\p1 %all update ^?       
sc5>ios once e #c ye>s4  7#c7           
,int]national coord9ation ,9 develop+ & 
updat+ ! #c sc5>ios requir$ "u ?is      
subsection1 ! ,bo>d ( ,gov]nors %all    
take into consid]ation analytic tools & 
be/ practices develop$ by int]national  
bank+ sup]visors relat+ to climate risks
 & sc5>io analysis 9 an ef=t to develop 
consi/5t & comp>able data-driv5 sc5>ios4
  7#d7 ,recomm5dations ,if ! ,te*nical  
,developm5t ,gr\p det]m9es t ! av]age   
increase 9 global temp]atures describ$ 9
 subp>agraph 7,a7 or 7,b7 ( p>agraph    
7#a7 is no long] sci5tifically valid1 ! 
,te*nical ,developm5t ,gr\p may recomm5d
 t ! ,bo>d ( ,gov]nors1 9 coord9ation ) 
! climate sci5ce leads1 update ! av]age 
increase 9 global temp]atures describ$ 9
 ! applicable subp>agraph to reflect !  

mo/ curr5t assessm5t ( climate *ange    
sci5ce4  7b7 ,consid]ations ,9 develop+ 
& updat+ ea* ( ! #c sc5>ios requir$ "u  
subsection 7a71 ! ,bo>d ( ,gov]nors1 9  
coord9ation ) ! climate sci5ce leads1   
%all acc\nt = physical risks &          
transition risks t may disrupt bus9ess  
op]ations across ! global economy1      
includ+ ?r\gh--  7#a7 disruptions )     
respect to-- 7,a7 ! s\rc+ ( mat]ials2   
7,b7 production2 &  7,c7 ! disposal (   
products & s]vices2  7#b7 *anges 9 !    
availability & prices ( raw mat]ials &  
o!r inputs2  7#c7 *anges 9 agricultural 
production & ) respect to food security2
  7#d7 direct damages to fix$ assets2   
7#e7 increases 9 co/s associat$ ) insur$
 or un9sur$ losses2  7#f7 *anges 9 asset
 values2  7#g7 impacts on--  7,a7       
aggregate dem& = products & s]vices2    
7,b7 labor productivity2  7,c7 asset    
liquidity2 &  7,d7 cr$it availability2  
7#h7 mass migration & increases 9       
disease & mortality rates2  7#i7        
int]national conflict1 z su* conflict   

relates to global economic activity &   
output2 &  7#aj7 *anges 9 any o!r       
microeconomic or macroeconomic condition
 t ! ,bo>d ( ,gov]nors1 9 coord9ation ) 
! climate sci5ce leads1 det]m9es to be  
relevant4  #f4 ,climate-relat$ enhanc$  
sup]vision = c]ta9 nonbank f9ancial     
companies & bank hold+ companies        
,section #afe7;i77#a7 ( ! ,f9ancial     
,/ability ,act ( #bjaj 7#ab ,u4,s4,c4   
#ecfe7;i77#a77 is am5d$-- 7#a7 9        
subp>agraph 7,b77i71 by ins]t+ except z 
provid$ 9 subp>agraph 7,c77ii77,i71 be=e
 %all provide2 &  7#b7 by add+ at ! end 
! foll[+3  7,c7 ,bi5nial te/s requir$   
7i7 ,def9itions ,9 ?is subp>agraph--    
7,i7 ! t]m capital di/ribution has !    
mean+ giv5 ! t]m 9 section #bbe4h (     
title #ab1 ,code ( ,f$]al ,regulations1 
z 9 effect on ! date ( enactm5t ( ?is   
subp>agraph2  7,,ii7 ! t]m capital      
policy has ! mean+ giv5 ! t]m 9 section 
#bbe4h7;d77#h7 ( title #ab1 ,code (     
,f$]al ,regulations1 z 9 effect on !    
date ( enactm5t ( ?is subp>agraph2 &    

7,,iii7 ! t]ms climate sci5ce leads &   
cov]$ entity h ! mean+s giv5 ^? t]ms 9  
section #c ( ! ,climate ,*ange ,f9ancial
 ,risk ,act ( #bjai4  7ii7 ,te/s  7,i7  
,9 g5]al ,subject to ! o!r requirem5ts (
 ?is clause1 ! ,bo>d ( ,gov]nors1 9     
coord9ation ) ! appropriate prim>y      
f9ancial regulatory ag5cies & ! climate 
sci5ce leads1 %all conduct bi5nial      
analyses 9 :i* ea* cov]$ entity is      
subject to evaluation1 "u an adv]se set 
( conditions1 ( :e!r t cov]$ entity has 
! capital1 on a total consolidat$ basis1
 necess>y to absorb f9ancial losses t   
w\ld arise "u ea* climate *ange risk    
sc5>io develop$ "u section #e ( !       
,climate ,*ange ,f9ancial ,risk ,act (  
#bjai4  7,,ii7 ,initial te/s ,) respect 
to ea* ( ! fir/ #c analyses conduct$ "u 
subclause 7,i7-- 7aa7 ! cov]$ entity to 
:i* su* an analysis applies %all n be   
subject to any adv]se consequ5ces z a   
result ( ! analysis2 &  7bb7 ! ,bo>d (  
,gov]nors %all-- 7,,aa7 n lat] ?an #fj  
days aft] ! date on :i* ! ,bo>d (       

,gov]nors completes ea* su* analysis1   
make a summ>y ( ! analysis publicly     
available2 & 7,,bb7 submit a copy ( !   
results ( ! analysis to ! ,committee on 
,bank+1 ,h\s+1 & ,urban ,affairs ( !    
,s5ate & ! ,committee on ,f9ancial      
,s]vices ( ! ,h\se ( ,repres5tatives4   
7,,iii7 ,climate risk capital policy    
7aa7 ,9 g5]al ,except ) respect to !    
fir/ analysis conduct$ "u subclause     
7,i71 ea* cov]$ entity %all1 be=e be+   
subject to an analysis "u t subclause1  
submit to ! ,bo>d ( ,gov]nors a capital 
policy ) respect to climate risk plann+ 
7ref]r$ to 9 ?is subclause z a climate  
risk capital policy71 :i* %all be bas$  
on ! results ( ! mo/ rec5tly conduct$   
analysis ( ! cov]$ entity "u t          
subclause4  7bb7 ,rejection ,except z   
provid$ 9 subclause 7,,ii77aa71 ! ,bo>d 
( ,gov]nors may object to a climate risk
 capital policy submitt$ by a cov]$     
entity "u item 7aa7 if ! ,bo>d (        
,gov]nors det]m9es t-- 7,,aa7 ! cov]$   
entity has n demon/rat$ a reasonable    

plan to ma9ta9 capital above ea* m9imum 
regulatory capital ratio on a pro =ma   
basis "u ! adv]se set ( conditions      
describ$ 9 subclause 7,i72 7,,bb7 !     
climate risk capital policy is o!rwise n
 reasonable or appropriate2 7,,cc7 !    
assumptions & analysis und]ly+ ! climate
 risk capital policy1 or ! me?odologies 
& practices t support ! climate risk    
capital policy1 are n reasonable or     
appropriate2 or 7,,dd7 ! climate risk   
capital policy o!rwise con/itutes an    
unsafe or uns\nd practice4  7cc7 ,g5]al 
di/ribution limitation ,if ! ,bo>d (    
,gov]nors1 "u item 7bb71 objects to a   
climate risk capital policy submitt$ by 
a cov]$ entity "u item 7aa71 ! cov]$    
entity may n make any capital           
di/ribution1 o!r ?an a capital          
di/ribution aris+ f ! issuance ( a      
regulatory capital in/rum5t eligible =  
inclusion 9 ! num]ator ( a m9imum       
regulatory capital ratio4  4  #g4       
,f9ancial ,/ability ,ov]sight ,c\ncil   
7a7 ,9 g5]al ,! ,f9ancial ,/ability     

,ov]sight ,c\ncil %all e/abli% a        
subcommittee ( ! ,c\ncil t %all support 
! ,c\ncil 9 id5tify+ risks to1 & 9      
respond+ to em]g+ ?reats to1 ! /ability 
( ! ,unit$ ,/ates f9ancial sy/em z a    
result ( climate *ange4  7b7            
,responsibilities  7#a7 ,subcommittee ,!
 subcommittee e/abli%$ "u subsection 7a7
 %all1 n lat] ?an #a ye> aft] !         
completion ( ! fir/ analysis requir$ "u 
subp>agraph 7,c7 ( section #afe7;i77#a7 
( ! ,f9ancial ,/ability ,act ( #bjaj    
7#ab ,u4,s4,c4 #ecfe7;i77#a771 z add$ by
 section #f ( ?is ,act1 & 9 consultation
 ) ! ,(fice ( ,f9ancial ,rese>*1 submit 
to ,congress an assessm5t ( ! risk pos$ 
by climate *ange to ! effici5cy1        
competitiv5ess1 & /ability ( ! ,unit$   
,/ates f9ancial sy/em z a :ole4  7#b7   
,c\ncil ,= ea* ye> aft] ! ye> 9 :i* !   
assessm5t requir$ "u p>agraph 7#a7 is   
submitt$1 ! ,f9ancial ,/ability         
,ov]sight ,c\ncil %all include 9 !      
annual report requir$ "u section        
#aab7;a77#b77,n7 ( ! ,f9ancial ,/ability

 ,act ( #bjaj 7#ab ,u4,s4,c4            
#ecbb7;a77#b77,n77 an update to t       
assessm5t4  7c7 ,composition ,!         
subcommittee e/abli%$ "u subsection 7a7 
%all be compos$ (-- 7#a7 ! ,*airman ( ! 
,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve    
,sy/em2  7#b7 ! ,secret>y ( ! ,treasury2
  7#c7 ! ,comptroll] ( ! ,curr5cy2  7#d7
 ! ,*airp]son ( ! ,bo>d ( ,directors ( !
 ,f$]al ,deposit ,insurance             
,corporation2  7#e7 ! ,*airman ( !      
,securities & ,ex*ange ,commission2     
7#f7 ! ,*airp]son ( ! ,commodity        
,futures ,trad+ ,commission2 &  7#g7 any
 o!r vot+ or nonvot+ memb]s t !         
,f9ancial ,/ability ,ov]sight ,c\ncil   
det]m9es to be appropriate4