In advance of a June 6-7, 2022, meeting, the Office of the Comptroller of the Currency (OCC) has indicated the agency is soliciting climate risk academic papers and research information.
The submissions would aid in forming the OCC’s approach in developing climate-related financial risk management guidance for regulated institutions. The meeting would offer a platform for academic, regulatory, and other industry personnel to meet and provide research on the climate change and financial system interaction.
Per the OCC, climate change presents risks to the financial system through increased frequency, severity, and extreme weather volatility, impacting the value of financial assets and borrowers’ creditworthiness.
The OCC noted it is working to ensure banks understand climate change risk and develop a framework to measure, monitor, and control those risks.
Topics of interest are expected to include physical risks that are derived from climate change; transition risks resulting from climate policies, technological innovation, consumer sentiment, or investor sentiment; differential community impact; climate risk modeling and stress testing; environmental, social, and governance ratings; as well as regulatory reliance.
The OCC anticipates six to 10 papers will be chosen for presentation and discussion. Those interested in submitting papers or a one-page extended abstract/executive summary must do so by March 11, 2022, to EconClimateRiskSymposium@occ.treas.gov.