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

Environmental Issues

May 30, 2025

NAHB Members Provide Final Recommendations for New WOTUS Rule

NAHB members concluded their participation in multiple “waters of the United States” (WOTUS) listening sessions with strong showings in Washington, D.C., and Salt Lake City. In total, 12 NAHB members and four staff members from NAHB and state home builder associations (HBAs), representing 11 states, provided oral statements at listening sessions.

Workforce Development

May 30, 2025

Statement from NAHB Chairman Buddy Hughes on DOL Decision to Pause Job Corps Center Operations

NAHB Chairman Buddy Hughes issued the following statement after the Department of Labor announced it was pausing Job Corps center operations nationwide.

View all

Latest Economic News

Economics

May 30, 2025

Multifamily Absorption Moves Lower for New Apartments

The percentage of new apartment units that were absorbed within three months after completion continued to trend lower, according to the Census Bureau’s latest release of the Survey of Market Absorption of New Multifamily Units (SOMA).

Economics

May 29, 2025

Treasury Yield Increase Drives Mortgage Rates Higher in May

Mortgage rates continued their upward trend in May due to market volatility triggered by fiscal concerns and weaker U.S. Treasury demand. According to Freddie Mac, the average 30-year fixed-rate mortgage rose to 6.82% — a 9-basis-point (bps) increase from April. The 15-year fixed-rate mortgage increased by 5 bps to 5.95%.

Economics

May 28, 2025

Aging-in-Place Remodeling Work Fell While Familiarity and Receptiveness Remain High

Only 56% of professional remodelers undertake projects designed to allow homeowners to Age-in-Place (AIP), according to results from NAHB’s Q1 2025 Remodeling Market Index (RMI) survey.