Financial Stability Oversight Council Releases Report on Climate-Related Financial Risk

Environment
Published

The Financial Stability Oversight Council (FSOC) today released its report on Climate-Related Financial Risk.

The report includes more than 30 specific recommendations to U.S. financial regulators, and lays out necessary actions to identify and address climate-related risks to the U.S. financial system, which include warming temperatures, rising sea levels, droughts, wildfires, intensifying storms and other climate-related events that are already imposing significant costs on the public and U.S. economy.

Established under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the FSOC provides comprehensive monitoring of the stability of the nation’s financial system.

The recommendations that the FSOC and its members can adopt to strengthen the financial system and make it more resilient to climate-related shocks and vulnerabilities fall into four broad categories:

  1. Building capacity and expanding efforts to address climate-related financial risks
  2. Filling climate-related data and methodological gaps
  3. Enhancing public climate-related disclosures
  4. Assessing and mitigating climate-related risks that could threaten the stability of the financial system

One key takeaway from the report regarding the banking sector is there is no bank capital charge. In other words, the report does not seek to impose a capital charge on banks for climate change risk.

View the Treasury Department press release and fact sheet on the climate report.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Economics

Apr 23, 2025

Decline in Mortgage Rates Helps to Increase New Home Sales in March

Sales of newly built, single-family homes in March increased 7.4% to a 724,000 seasonally adjusted annual rate from a revised January number, according to newly released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The pace of new home sales in March was up 6.0% compared to a year earlier.

Member Benefits

Apr 22, 2025

Ford Pro Joins NAHB's Member Savings Program

Through this exclusive program, NAHB members can save up to $5,000 on a wide range of Ford Pro cars, trucks, vans and SUVs. Plus, the member discounts can be combined with local dealership offers.

View all

Latest Economic News

Economics

Apr 23, 2025

New Home Sales Rise in March

A modest decline in mortgage rates and lean existing inventory helped boost new home sales in March even as builders and consumers contend with uncertain market conditions.

Economics

Apr 22, 2025

The Power of Women in the Workforce

Over the past 125 years, women have played a crucial and multifaceted role in the labor force. Increasing women’s participation in the workforce is not only essential for individual and family well-being, but also contributes significantly to overall labor force participation rates and economic growth by adding more workers and enhancing overall productivity.

Economics

Apr 21, 2025

Who Influences the Purchasing of Building Products?

In a previous post, NAHB analyzed where builders and remodelers purchased products, regardless of who ultimately purchases them (themselves or subcontractors). In this post, the question shifts to who is most often responsible for the choice of particular products.