October 3, 2022 

CHARTER OF THE 

CLIMATE-RELATED FINANCIAL RISK ADVISORY COMMITTEE OF THE

FINANCIAL STABILITY OVERSIGHT COUNCIL

1. Establishment. The Climate-related Financial Risk Advisory Committee (CFRAC) is 

established pursuant to section 111(d) of the Dodd-Frank Wall Street Reform and Consumer 

Protection Act (Dodd-Frank Act). 

2. Purpose. The purpose of the CFRAC is to assist the Financial Stability Oversight Council 

(Council) in gathering information on, conducting analysis of, and making recommendations 

to identify, assess, and mitigate climate-related risks to the financial system, consistent with 

the Council’s purposes and duties under the Dodd-Frank Act. 

3. Duties. The duties of the CFRAC are solely advisory and will extend only to the submission 

of advice and recommendations to the Council’s Climate-related Financial Risk Committee 

(CFRC), which will be non-binding to the CFRC. No determination of fact or policy will be 

made by the CFRAC. The duties of the CFRAC include: 

a) identifying information gaps and data inconsistencies, and recommending options 

for addressing these issues, to support the Council’s collection of information 

pertaining to climate-related risks to the financial system; 

b) gathering and analyzing information on climate-related risks to the financial 

system;

c) providing advice and recommendations to the CFRC on identifying, assessing, 

and mitigating climate-related risks to the financial system; and 

d) performing such other duties that the CFRC, the Council’s Deputies Committee

(the Deputies Committee), or the Council may assign.

4. Committee Oversight. The CFRAC will report to the CFRC. 

5. Members. The CFRAC will consist of up to 30 members. The Office of the Financial 

Stability Oversight Council (Secretariat) at the Department of the Treasury (Treasury) will

seek to ensure that the CFRAC includes members from a diverse variety of stakeholders, 

which may include climate science experts; non-governmental research institutions; 

academia; the financial services industry; commercial businesses; consumer, investor, 

environmental, and labor groups; and other stakeholders as appropriate. The CFRAC may be 

composed of special government employees and representative members. Members will 

serve terms of one to three years, as designated by the Secretariat in writing at the time of 

each member’s appointment. 

a. Selection of Members. Council members and staffs of Council members and 

Council member agencies may propose candidates for CFRAC membership, from 

which group the Secretariat will select a slate of proposed members. The 

Deputies Committee will consider the proposed slate, make any revisions (subject 

to Secretariat approval), and submit a recommended slate of members to be 

approved by vote of the Council. 
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b. Replacement and Removal of Members. If a member does not complete their 

term, their organization may nominate another candidate to replace them. The 

Secretariat will review the nomination and may recommend that the nominee 

become a member of the CFRAC upon approval by the Deputies Committee. The

Council or the Deputies Committee may, by majority vote, remove a member 

prior to the designated end of the member’s term. 

6. Observers. The Secretariat may designate federal and state government employees to serve 

as observers at CFRAC meetings, provided that they are currently employed by a 

government agency with climate expertise that is not represented by a voting or non-voting 

member of the Council. 

7. CFRAC Chair. The Deputy Assistant Secretary for the Financial Stability Oversight Council 

at Treasury or person acting in such capacity (Council DAS) will serve as the Chairperson of 

the CFRAC. If there is no Council DAS, the Executive Director of the Council will serve as 

the Chairperson of the CFRAC. If there is neither a Council DAS nor an Executive Director 

of the Council, then the Director of Policy in the Secretariat or person acting in such capacity 

will serve as Chairperson. The Chairperson will facilitate the conduct of business by the 

CFRAC and may adopt, in addition to this charter, such rules or procedures, and appoint such 

officers of the CFRAC, as may be necessary for the conduct of the business of the 

CFRAC. The Chairperson will be considered a non-voting member of the CFRAC. 

8. Administrative Duties. The Secretariat will perform the administrative functions to support 

the operations and work of the CFRAC. Such functions may include, among others, calling 

meetings of the CFRAC, preparing meeting agendas, developing work plans for tasks 

assigned to the CFRAC, distributing materials, coordinating the production of CFRAC work 

product, maintaining distribution lists for purposes of communications to members and 

observers on the CFRAC, and retaining custody of all records of the CFRAC. The 

Secretariat will regularly consult and coordinate with members on the CFRAC in performing 

these responsibilities. 

9. Assigning Activities. The CFRC will generally assign activities to the CFRAC for purposes 

of fulfilling its duties, provided that the Council and the Deputies Committee may also assign 

such activities, and provided further that the CFRAC may also determine, by majority vote, 

to undertake any tasks within the scope of its duties. 

10. Meetings. The CFRAC will meet not less than two times each year, with additional meetings 

held as the Chairperson, the CFRC, the Deputies Committee, or the Council may deem 

appropriate. To the extent practicable, the Secretariat will provide at least two weeks’ notice 

prior to each meeting of the CFRAC, and such notice will include a preliminary agenda for 

the meeting. Subject to the arrangement of appropriate security measures, participants on the 

CFRAC may participate in a meeting of the CFRAC through use of videoconference, 

conference call, telephone, or other communications equipment that allows persons to be 

heard and to hear others in the meeting. CFRAC meetings will not be public, provided that 

the Chairperson may determine to hold all or part of a meeting in public for purposes related 

to the duties of the CFRAC. 
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11. Committee Action. All decisions of the CFRAC will be made by majority vote of members. 

Any votes will be recorded in the minutes of the CFRAC. 

12. Subcommittees. The CFRAC may establish subcommittees by majority vote of the CFRAC 

members, with the consent of the Chairperson. Membership of any subcommittees will be 

determined by the Chairperson. 

13. Costs. Any administrative costs of the CFRAC will be paid by the Council. Members will 

not be compensated for their time or service on the CFRAC. Members may be compensated 

for reasonable travel expenses incurred in traveling to any CFRAC meetings held in person, 

in accordance with 5 U.S.C. § 5703. 

14. Recordkeeping. Pursuant to section 111(g) of the Dodd-Frank Act (12 U.S.C. § 5321(g)), (a) 

the CFRAC will not be subject to the requirements of the Federal Advisory Committee Act 

(5 U.S.C. App.), and (b) the Secretariat will publish on the Treasury website a list of the 

names of members who are not employees of, or affiliated with, the U.S. Government. 

15. Meeting Minutes. The Secretariat will prepare minutes of CFRAC meetings, which will be 

published on the Treasury website. 

16. Meeting Materials. The Chairperson may determine to publish meeting materials of the 

CFRAC on the Treasury website.