Federal Register / Vol. 87, No. 64 / Monday, April 4, 2022 / Notices 19507 

‘‘Select Agency’’ box below the 

‘‘Currently Under Review’’ heading, (4) 

select ‘‘Federal Communications 

Commission’’ from the list of agencies 

presented in the ‘‘Select Agency’’ box, 

(5) click the ‘‘Submit’’ button to the 

right of the ‘‘Select Agency’’ box, (6) 

when the list of FCC ICRs currently 

under review appears, look for the Title 

of this ICR and then click on the ICR 

Reference Number. A copy of the FCC 

submission to OMB will be displayed. 

SUPPLEMENTARY INFORMATION: The 

Commission may not conduct or 

sponsor a collection of information 

unless it displays a currently valid 

Office of Management and Budget 

(OMB) control number. No person shall 

be subject to any penalty for failing to 

comply with a collection of information 

subject to the PRA that does not display 

a valid OMB control number. 

As part of its continuing effort to 

reduce paperwork burdens, as required 

by the Paperwork Reduction Act (PRA) 

of 1995 (44 U.S.C. 3501–3520), the FCC 

invited the general public and other 

Federal Agencies to take this 

opportunity to comment on the 

following information collection. 

Comments are requested concerning: (a) 

Whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

Commission, including whether the 

information shall have practical utility; 

(b) the accuracy of the Commission’s 

burden estimates; (c) ways to enhance 

the quality, utility, and clarity of the 

information collected; and (d) ways to 

minimize the burden of the collection of 

information on the respondents, 

including the use of automated 

collection techniques or other forms of 

information technology. Pursuant to the 

Small Business Paperwork Relief Act of 

2002, Public Law 107–198, see 44 U.S.C. 

3506(c)(4), the FCC seeks specific 

comment on how it might ‘‘further 

reduce the information collection 

burden for small business concerns with 

fewer than 25 employees.’’ 

OMB Control Number: 3060–0466. 

Title: Sections 74.783, 73.1201 and 

74.1283, Station Identification. 

Form Number: Not applicable. 

Type of Review: Extension of a 

currently approved collection. 

Respondents: Business or other forprofit entities; Not for-profit 

institutions; State, Local or Tribal 

Government. 

Number of Respondents and 

Responses: 28,323 respondents; 28,323 

responses. 

Estimated Time per Response: 0.166– 

1 hour. 

Frequency of Response: On occasion 

reporting requirement; Recordkeeping 

requirement; Third party disclosure 

requirement. 

Obligation to Respond: Required to 

obtain or maintain benefits. The 

statutory authority for this collection of 

information is contained in 47 U.S.C. 

151, 152, 154(i), 303, 307 and 308. 

Total Annual Burden: 26,715 hours. 

Total Annual Costs: No cost. 

Needs and Uses: The information 

collection requirements for this 

collection are as following: 47 CFR 

73.1201(a) requires television broadcast 

licensees to make broadcast station 

identification announcements at the 

beginning and ending of each time of 

operation, and hourly, as close to the 

hour as feasible, at a natural break in 

program offerings. Television and Class 

A television broadcast stations may 

make these announcements visually or 

aurally. 

47 CFR 74.783(b) requires licensees of 

television translators whose station 

identification is made by the television 

station whose signals are being 

rebroadcast by the translator, must 

secure agreement with this television 

station licensee to keep in its file, and 

available to FCC personnel, the 

translator’s call letters and location, 

giving the name, address and telephone 

number of the licensee or his service 

representative to be contacted in the 

event of malfunction of the translator. It 

shall be the responsibility of the 

translator licensee to furnish current 

information to the television station 

licensee for this purpose. 

47 CFR 73.1201(b)(1) requires that the 

official station identification consist of 

the station’s call letters immediately 

followed by the community or 

communities specified in its license as 

the station’s location. The name of the 

licensee, the station’s frequency, the 

station’s channel number, as stated on 

the station’s license, and/or the station’s 

network affiliation may be inserted 

between the call letters and station 

location. Digital Television (DTV) 

stations, or DAB Stations, choosing to 

include the station’s channel number in 

the station identification must use the 

station’s major channel number and 

may distinguish multicast program 

streams. For example, a DTV station 

with major channel number 26 may use 

26.1 to identify a High Definition 

Television (HDTV) program service and 

26.2 to identify a Standard Definition 

Television (SDTV) program service. A 

radio station operating in DAB hybrid 

mode or extended hybrid mode shall 

identify its digital signal, including any 

free multicast audio programming 

streams, in a manner that appropriately 

alerts its audience to the fact that it is 

listening to a digital audio broadcast. No 

other insertion between the station’s call 

letters and the community or 

communities specified in its license is 

permissible. A station may include in its 

official station identification the name 

of any additional community or 

communities, but the community to 

which the station is licensed must be 

named first. 

47 CFR 74.783(e) permits low power 

TV permittees or licensees to request to 

be assigned four-letter call signs in lieu 

of the five-character alpha-numeric call 

signs. 

47 CFR 74.1283(c)(1) requires a FM 

translator station licensee whose 

identification is made by the primary 

station must arrange for the primary 

station licensee to furnish the 

translator’s call letters and location 

(name, address, and telephone number 

of the licensee or service representative) 

to the FCC. The licensee must keep this 

information in the primary station’s 

files. 

Federal Communications Commission. 

Marlene Dortch, 

Secretary, Office of the Secretary. 

[FR Doc. 2022–07008 Filed 4–1–22; 8:45 am] 

BILLING CODE 6712–01–P 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

RIN 3064–ZA32 

Statement of Principles for ClimateRelated Financial Risk Management for 

Large Financial Institutions 

AGENCY: Federal Deposit Insurance 

Corporation. 

ACTION: Notice of proposed policy 

statement; request for comment. 

SUMMARY: The Federal Deposit 

Insurance Corporation (FDIC) is 

requesting comment on draft principles 

that would provide a high-level 

framework for the safe and sound 

management of exposures to climaterelated financial risks. Although all 

financial institutions, regardless of size, 

may have material exposures to climaterelated financial risks, these draft 

principles are targeted at the largest 

financial institutions, those with over 

$100 billion in total consolidated assets. 

The draft principles are intended to 

support efforts by large financial 

institutions to focus on key aspects of 

climate-related financial risk 

management. 

DATES: Comments must be received no 

later than June 3, 2022. 

ADDRESSES: Commenters are encouraged 

to use the title ‘‘Principles for ClimateVerDate Sep<11>2014 17:09 Apr 01, 2022 Jkt 256001 PO 00000 Frm 00043 Fmt 4703 Sfmt 4703 E:\FR\FM\04APN1.SGM 04APN1

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19508 Federal Register / Vol. 87, No. 64 / Monday, April 4, 2022 / Notices 

1 In this issuance, the term ‘‘financial institution’’ 

or ‘‘institution’’ means insured state nonmember 

banks, state-licensed insured branches of foreign 

banks that are subject to the provisions of section 

39 of the Federal Deposit Insurance Act, and state 

savings associations. 

2For additional background, see generally 

Financial Stability Oversight Council, Report on 

Climate-Related Financial Risk (2021). Further, see 

Financial Stability Board, The Implications of 

Climate Change for Financial Stability (2020). 

3For example, acute physical risks, such as 

flooding, hurricanes, wildfires, and droughts, may 

result in sudden, significant, and recurring damage 

to residential and commercial real estate properties 

securing exposures held by financial institutions or 

may otherwise disrupt the operations of their 

business clients. Further, longer-term gradual 

physical risks, such as rising average temperatures 

and sea levels may increase the risk to property 

values and drive migration patterns as individuals 

and businesses prioritize geographic areas less 

exposed to physical risks, which may produce 

detrimental impacts to household wealth, corporate 

profitably, local economies and municipalities in 

certain geographies. See www.whitehouse.gov, 

Report on the impact of climate change on 

migration (2021) https://www.whitehouse.gov/wpcontent/uploads/2021/10/Report-on-the-Impact-ofClimate-Change-on-Migration.pdf. 

4Reductions in carbon emissions are often 

considered through a ‘‘carbon equivalent amount’’, 

which measures the emissions of various 

greenhouse gases in terms of their equivalent 

amount of carbon dioxide with the same global 

warming potential. For example, see Equation A– 

1 in 40 CFR part 98. 

5For example, it may become more costly or 

difficult for certain climate-sensitive investments 

and businesses to comply with climate policies. 

Further, delayed implementation of climate policies 

may result in a more abrupt transition for such 

climate-sensitive investments and businesses, 

increasing the risks and ultimate costs of 

transitioning to a more sustainable economy. 

Advancements in technology may also accelerate 

the development of low-carbon energy sources, 

while investor and public preferences and behavior 

may result in a shift towards more energy efficient 

assets and companies earlier than otherwise 

expected. See Network of Central Banks and 

Supervisors for Greening the Financial System, 

NGFS Climate Scenarios for Central Banks and 

Supervisors (2020); IEA and IRENA, Perspectives 

for the energy transition—Investment needs for a 

low-carbon energy system (2017). 

6For example, physical and transition risks also 

have the potential to produce ‘‘feedback loops’’ 

across the financial system and economy, which 

can amplify and reinforce the impacts of climate 

change through procyclical behavior, such as 

widespread reduction in bank lending and lead to 

declines in asset valuations and economic growth. 

Related Financial Risk Management for 

Large Financial Institutions’’ (RIN 3064– 

ZA32) and to identify the number of the 

specific question(s) for comment to 

which they are responding. Please send 

comments by one method only directed 

to: 

• Agency Website: https:// 

www.fdic.gov/resources/regulations/ 

federal-register-publications/index.html. 

Follow the instructions for submitting 

comments on the agency’s website. 

• Email: comments@fdic.gov. Include 

RIN 3064–ZA32 in the subject line of 

the message. 

• Mail: James P. Sheesley, Assistant 

Executive Secretary, Attention: 

Comments—RIN 3064–ZA32, Federal 

Deposit Insurance Corporation, 550 17th 

Street NW, Washington, DC 20429. 

• Hand Delivery/Courier: Comments 

may be hand-delivered to the guard 

station at the rear of the 550 17th Street 

NW building (located on F Street NW) 

on business days between 7:00 a.m. and 

5:00 p.m. 

• Public Inspection: All comments 

received will be posted without change 

to https://www.fdic.gov/resources/ 

regulations/federal-registerpublications/index.html—including any 

personal information provided—for 

public inspection. Paper copies of 

public comments may be ordered from 

the FDIC Public Information Center, 

3501 North Fairfax Drive, Room E–1002, 

Arlington, VA 22226 or by telephone at 

877–275–3342 or 703–562–2200. 

FOR FURTHER INFORMATION CONTACT: 

Andrew D. Carayiannis, Senior Policy 

Analyst, Capital Markets Strategies 

Section, acarayiannis@fdic.gov; Lauren 

K. Brown, Senior Policy Analyst, Exam 

Support Section, laubrown@fdic.gov; 

regulatorycapital@fdic.gov; Capital 

Markets and Accounting Policy, 

Division of Risk Management 

Supervision, 202–898–6888; Jennifer M. 

Jones, Counsel, jennjones@fdic.gov; 

Karlyn Hunter, Counsel, kahunter@

fdic.gov; Amanda Ledig, Senior 

Attorney, aledig@fdic.gov; Supervision 

and Legislation, and Enforcement 

Branch, Legal Division, Federal Deposit 

Insurance Corporation, 550 17th Street 

NW, Washington, DC 20429. For the 

hearing impaired only, 

Telecommunication Device for the Deaf 

(TDD), 800–925–4618. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Introduction 

II. General Principles 

A. Governance 

B. Policies, Procedures, and Limits 

C. Strategic Planning 

D. Risk Management 

E. Data, Risk Measurement, and Reporting 

F. Scenario Analysis 

III. Management of Risk Areas 

A. Credit Risk 

B. Liquidity Risk 

C. Other Financial Risk 

D. Operational Risk 

E. Legal/Compliance Risk 

F. Other Nonfinancial Risk 

IV. Paperwork Reduction Act 

V. Request for Comment 

I. Introduction 

The effects of climate change and the 

transition to a low carbon economy 

present emerging economic and 

financial risks that threaten the safety 

and soundness of financial institutions 

and the stability of the financial 

system.1 2 Financial institutions are 

likely to be affected by both the physical 

risks and transition risks associated 

with climate change (referred to in these 

draft principles as climate-related 

financial risks). Physical risks generally 

refer to the harm to people and property 

arising from acute, climate-related 

events, such as hurricanes, wildfires, 

floods, and heatwaves, and chronic 

shifts in climate, including higher 

average temperatures, changes in 

precipitation patterns, sea level rise, and 

ocean acidification. Transition risks 

generally refer to stresses to certain 

financial institutions or sectors arising 

from the shifts in policy, consumer and 

business sentiment, or technologies 

associated with the changes necessary to 

limit climate change. 

The economic and financial risks 

associated with physical risks reflect 

damages to property, infrastructure, and 

business disruptions, all of which have 

real effects to the value of property 

securing financial institutions’ 

exposures and borrowers’ ability to 

perform on their obligations.3 Regarding 

transition risks, certain companies or 

sectors may become less competitive 

over time as policies implemented to 

reduce carbon emissions or carbonequivalents to mitigate the risks of 

climate change (e.g., carbon pricing), 

technological advances, and changes in 

investor and public preferences may all 

contribute to and accelerate a transition 

to a low-carbon economy, in each case 

potentially resulting in reduced 

profitably and ability to repay 

obligations for financial institutions’ 

counterparties, as well as reductions in 

the value for certain assets that are less 

productive in a low-carbon 

environment.4 5 Transition risks may 

also increase litigation, liability, legal 

and regulatory compliance risks 

associated with climate-sensitive 

investments and businesses, or pose 

other risks to institutions based on shifts 

in market or consumer preferences. 

Additionally, the value of financial 

assets may be adversely affected as 

market participants reflect the future 

impacts of both physical and transition 

risks on financial performance. 

From a financial stability perspective, 

climate-related financial risks have the 

potential to impact financial institutions 

and the economy through both 

macroeconomic and microeconomic 

factors, such as reductions in economic 

growth and labor productivity, 

increased borrowing costs, and higher 

commodities prices, as well as directly 

to financial institutions themselves or 

through their counterparties.6 These 


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Further, interconnections within the financial 

system can accelerate the spread of a climaterelated financial shocks, leading to potential 

contagion effects if institutions experience shocks 

as a result of physical or transition risks. See, for 

example, Financial Stability Board, The 

Implications of Climate Change for Financial 

Stability (2020); Basel Committee on Banking 

Supervision, Climate-related risk drivers and their 

transmission channels (2021). 

7For further information, see Staff Reports, 

Federal Reserve Bank of New York, Understanding 

the Linkages between Climate Change and 

Inequality in the United States, No. 991 (November 

2021). 

8The FDIC has established standards for safety 

and soundness, as required by section 39 of the 

Federal Deposit Insurance Act, in part 364 of FDIC 

Rules and Regulations. 

9 Generally, effective risk management practices 

should be appropriate to the size of the institution 

and the nature, scope, and risk of its activities. See, 

e.g., Appendix A to part 364. For purposes of these 

draft principles, the FDIC generally believes that 

these standards are particularly salient for the 

largest financial institutions, those with over $100 

billion in total consolidated assets. 

factors contribute to the way in which 

climate-related financial risks can 

transmit to a significant number of 

financial institutions and raise financial 

stability concerns. 

Climate-related financial risks pose a 

clear and significant risk to the U.S. 

financial system and, if unmitigated, 

may pose a near-term threat to safe and 

sound banking and financial stability. 

Weaknesses in how institutions 

identify, measure, monitor, and control 

the physical and transition risks 

associated with a changing climate 

could adversely affect a financial 

institution’s safety and soundness, as 

well as the overall financial system. 

Adverse effects could include 

potentially disproportionate impact on 

the financially vulnerable, including 

low- to moderate-income (LMI) and 

other disadvantaged households and 

communities.7 With this, the manner in 

which financial institutions manage 

climate-related financial risks to address 

safety and soundness concerns should 

also seek to reduce or mitigate the 

impact that management of these risks 

may have on broader aspects of the 

economy, including the 

disproportionate impact of risk on LMI 

and other disadvantaged communities. 

The FDIC recognizes the need for 

comprehensive risk management 

guidelines that can be implemented 

consistently. These draft principles 

provide a high-level framework for the 

safe and sound management of 

exposures to climate-related financial 

risks, consistent with the risk 

management framework described in 

existing FDIC rules and guidance, and 

are intended to support efforts by 

financial institutions to focus on the key 

aspects of climate risk management.8

The draft principles will help financial 

institution management make progress 

toward answering key questions on 

climate exposures and incorporating 

climate-related financial risks into 

financial institutions’ risk management 

frameworks. Additionally, the draft 

principles are intended to support the 

use of scenario analysis as an emerging 

and important approach for identifying, 

measuring, and managing climaterelated risks, as well as risk assessment 

processes related to credit, liquidity, 

operational, legal and compliance, and 

other financial and nonfinancial risks. 

Some financial institutions, including 

many large financial institutions, are 

considering climate-related risks and 

would benefit from additional guidance 

as they develop capabilities, deploy 

resources, and make necessary 

investments to address climate-related 

financial risks. 

Although all financial institutions, 

regardless of size, may have material 

exposures to climate-related financial 

risks, these draft principles are targeted 

at the largest financial institutions, 

those with over $100 billion in total 

consolidated assets.9 The draft 

principles are an initial step to promote 

a consistent understanding of the 

effective management of climate-related 

financial risks. The FDIC plans to 

elaborate on these draft principles in 

subsequent guidance that would 

distinguish roles and responsibilities of 

boards of directors (boards) and 

management, incorporate the feedback 

received on the draft principles, and 

consider lessons learned and best 

practices from the industry and other 

jurisdictions. In keeping with the FDIC’s 

risk-based approach to supervision, the 

FDIC intends to appropriately tailor any 

resulting supervisory expectations to 

reflect differences in institutions’ 

circumstances such as complexity of 

operations and business models. 

Through this and any subsequent 

climate-related financial risk guidance, 

the FDIC will continue to encourage 

institutions to prudently meet the 

financial services needs of their 

communities. 

II. General Principles 

A. Goverance 

An effective risk governance 

framework is essential to a financial 

institution’s safe and sound operation. 

A financial institution’s board and 

management should demonstrate an 

appropriate understanding of climaterelated financial risk exposures and 

their impact on risk appetite to facilitate 

oversight. Sound governance includes 

reviewing information necessary to 

oversee the financial institution, 

allocating appropriate resources, 

assigning climate-related financial risk 

responsibilities throughout the 

organization (i.e., committees, reporting 

lines, and roles), and clearly 

communicating to staff regarding 

climate-related impacts to the 

institution’s risk profile. Responsibility 

and accountability may be integrated 

within existing organizational structures 

or by establishing new structures for 

climate-related financial risks. Where 

dedicated units are established, the 

board and management should clearly 

define these units’ responsibilities and 

interaction with existing governance 

structures. 

The board should have adequate 

understanding and knowledge to assess 

the potential impact of climate-related 

risks on the financial institution and to 

address and oversee these risks within 

the institution’s strategy and risk 

appetite, including an understanding of 

the potential ways in which these risks 

could evolve over various time horizons 

and scenarios. Relevant time horizons 

may include those that extend beyond 

the institution’s typical strategic 

planning horizon. The board should 

actively oversee the financial 

institution’s risk-taking activities and 

hold management accountable for 

adhering to the risk governance 

framework. Management is responsible 

for executing the financial institution’s 

overall strategic plan. This 

responsibility includes effectively 

managing all risks, including climaterelated financial risks, and their effects 

on the institution’s financial condition. 

Management should also hold staff 

accountable for controlling risks within 

established lines of authority and 

responsibility. Additionally, 

management is responsible for regularly 

reporting to the board on the level and 

nature of risks to the institution, 

including climate-related financial risks. 

B. Policies, Procedures, and Limits 

Management should incorporate 

climate-related risks into policies, 

procedures, and limits to provide 

detailed guidance on the institution’s 

approach to these risks in line with the 

strategy and risk appetite set by the 

board. Policies, procedures, and limits 

should be modified when necessary to 

reflect the distinctive characteristics of 

climate-related risks and changes to the 

institution’s activities. 

C. Strategic Planning 

The board and management should 

consider material climate-related 

financial risk exposures when setting 

the institution’s overall business 


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strategy, risk appetite, and financial, 

capital, and operational plans. As part 

of forward-looking strategic planning, 

the board and management should 

address the potential impact of climaterelated financial risk exposures on the 

institution’s financial condition, 

operations (including geographic 

locations), and business objectives over 

various time horizons. The board and 

management should also consider 

climate-related financial risk impacts on 

stakeholders’ expectations, the 

institution’s reputation, and LMI and 

other disadvantaged households and 

communities, including physical harm 

or access to bank products and services. 

The FDIC recognizes that the 

incorporation of material climate-related 

financial risks into various planning 

processes is iterative as measurement 

methodologies, models, and data for 

analyzing these risks continue to evolve 

and mature over time. 

Any climate related strategies, 

including any relevant corporate social 

responsibility objectives, should align 

with and support the institution’s 

broader strategy, risk appetite and risk 

management framework. In addition, 

where institutions engage in public 

communication of their climate-related 

strategies, boards and management 

should ensure that any public 

statements about an institution’s climate 

related strategies and commitments are 

consistent with their internal strategies 

and risk appetite statements. 

D. Risk Management 

Climate-related financial risks 

typically impact financial institutions 

through a range of traditional risk types. 

Management should oversee the 

development and implementation of 

processes to identify, measure, monitor, 

and control climate-related financial 

risk exposures within the institution’s 

existing risk management framework. A 

financial institution should employ a 

comprehensive process to identify 

emerging and material risks stemming 

from the institution’s business activities 

and associated exposures. The risk 

identification process should include 

input from stakeholders across the 

organization with relevant expertise 

(e.g., business units, independent risk 

management, and legal). Risk 

identification includes assessment of 

climate-related financial risks across a 

range of plausible scenarios and under 

various time horizons. 

As part of sound risk management, 

institutions should develop processes to 

measure and monitor material climaterelated financial risks and to inform 

management about the materiality of 

those risks. Material climate-related 

financial risk exposures should be 

clearly defined, aligned with the 

institution’s risk appetite, and 

supported by appropriate metrics (e.g., 

risk limits and key risk indicators) and 

escalation processes. Boards and 

management should also incorporate 

climate-related risks into their internal 

control frameworks, including internal 

audit. 

Tools and approaches for measuring 

and monitoring exposure to climaterelated risks include, among others, 

exposure analysis, heat maps, climate 

risk dashboards and scenario analysis. 

These tools can be leveraged to assess 

an institution’s exposure to both 

physical and transition risks in both the 

shorter and longer term. Outputs should 

inform the risk identification process 

and the short- and long-term financial 

risks to an institution’s business model 

from climate change. 

E. Data, Risk Measurement, and 

Reporting 

Sound climate risk management 

depends on the availability of relevant, 

accurate, and timely data. Management 

should incorporate climate-related 

financial risk information into the 

institution’s internal reporting, 

monitoring, and escalation processes to 

facilitate timely and sound decisionmaking across the institution. Effective 

risk data aggregation and reporting 

capabilities allow management to 

capture and report material and 

emerging climate-related financial risk 

exposures, segmented or stratified by 

physical and transition risks, based 

upon the complexity and types of 

exposures. Data, risk measurement, 

modeling methodologies, and reporting 

continue to evolve at a rapid pace; 

management should monitor these 

developments and incorporate them 

into their climate risk management as 

warranted. 

F. Scenario Analysis 

Climate-related scenario analysis is 

emerging as an important approach for 

identifying, measuring, and managing 

climate-related risks. For the purposes 

of this guidance, climate-related 

scenario analysis refers to exercises 

used to conduct a forward-looking 

assessment of the potential impact on an 

institution of changes in the economy, 

financial system, or the distribution of 

physical hazards resulting from climaterelated risks. These exercises differ from 

traditional stress testing exercises that 

typically assess the potential impacts of 

transitory shocks to near-term economic 

and financial conditions. An effective 

climate-related scenario analysis 

framework provides a comprehensive 

and forward-looking perspective that 

institutions can apply alongside existing 

risk management practices to evaluate 

the resiliency of an institution’s strategy 

and risk management to the structural 

changes arising from climate-related 

risks. 

Management should develop and 

implement climate-related scenario 

analysis frameworks in a manner 

commensurate to the institution’s size, 

complexity, business activity, and risk 

profile. These frameworks should 

include clearly defined objectives that 

reflect the institution’s overall climate 

risk management strategies. These 

objectives could include, for example, 

exploring the impacts of climate-related 

risks on the institution’s strategy and 

business model, identifying and 

measuring vulnerability to relevant 

climate-related risk factors including 

physical and transition risks, and 

estimating climate-related exposures 

and potential losses across a range of 

plausible scenarios. In the near term, a 

climate-related scenario analysis 

framework can also assist the institution 

in identifying data and methodological 

limitations and uncertainty in climate 

risk management and informing the 

adequacy of its climate risk management 

framework. 

Climate-related scenario analyses 

should be subject to oversight, 

validation, and quality control 

standards that would be commensurate 

to their risk. Climate-related scenario 

analysis results should be clearly and 

regularly communicated to all relevant 

individuals within the institution, 

including an appropriate level of 

information necessary to effectively 

convey the assumptions, limitations, 

and uncertainty of results. 

III. Management of Risk Areas 

A risk assessment process is part of a 

sound risk governance framework, and 

it allows boards and management to 

identify emerging risks and to develop 

and implement appropriate strategies to 

mitigate those risks. Boards and 

management should consider and 

incorporate climate-related financial 

risks when identifying and mitigating 

all types of risk. These risk assessment 

principles describe how climate-related 

financial risks can be addressed in 

various risk categories. The FDIC will 

elaborate on these risk assessment 

principles in subsequent guidance. 

A. Credit Risk 

The board and management should 

consider climate-related financial risks 

as part of the underwriting and ongoing 

monitoring of portfolios. Effective credit 

risk management practices could 


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10 ‘‘Green bonds’’ generally refer to fixed-income 

securities, the proceeds of which are earmarked for 

environmentally beneficial investment. 

include monitoring climate-related 

credit risks through sectoral, geographic, 

and single-name concentration analyses, 

including credit risk concentrations 

stemming from physical and transition 

risks. As part of concentration risk 

analysis, management should assess 

potential changes in correlations across 

exposures or asset classes. The board 

and management should determine 

credit risk appetite and lending limits 

related to these risks. 

B. Liquidity Risk 

The board and management should 

assess whether climate-related financial 

risks could affect liquidity and, if so, 

incorporate those risks into their 

liquidity risk management practices and 

liquidity buffers. 

C. Other Financial Risk 

Management should monitor interest 

rate risk and other model inputs for 

greater volatility or less predictability 

due to climate-related financial risks. 

Where appropriate, management should 

include corresponding measures of 

conservatism in their risk measurements 

and controls. The board and 

management should monitor how 

climate-related financial risks affect 

their institution’s exposure to risk 

related to changing prices. While market 

participants are still researching how to 

measure climate price risk, the board 

and management should use the best 

measurement methodologies reasonably 

available to them and refine them over 

time. 

D. Operational Risk 

The board and management should 

consider how climate-related financial 

risk exposures may adversely impact an 

institution’s operations, control 

environment, and operational resilience. 

Sound operational risk management 

includes incorporating an assessment 

across all business lines and operations, 

including third-party operations, and 

considering climate-related impacts on 

business continuity and the evolving 

legal and regulatory landscape. 

E. Legal/Compliance Risk 

The board and management should 

consider how climate-related financial 

risks and risk mitigation measures affect 

the legal and regulatory landscape in 

which the institution operates. This 

consideration includes possible changes 

to legal requirements for, or 

underwriting considerations related to, 

flood or disaster related insurance. It 

also includes possible fair lending 

concerns if the financial institution’s 

risk mitigation measures 

disproportionately affect communities 

or households on a prohibited basis 

such as race or ethnicity. 

F. Other Nonfinancial Risk 

Consistent with sound oversight, the 

board and management should monitor 

how the execution of strategic decisions 

and the operating environment affect 

the financial institution’s financial 

condition and operational resilience as 

discussed in the strategic planning 

section. The board and management 

should also consider the extent to which 

the financial institution’s activities may 

increase the risk of negative financial 

impact from reputational damage, 

liability, or litigation, and implement 

adequate measures to account for these 

risks where material. 

IV. Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(44 U.S.C. 3501–3521) (PRA) states that 

no agency may conduct or sponsor, nor 

is the respondent required to respond 

to, an information collection unless it 

displays a currently valid Office of 

Management and Budget (OMB) control 

number. 

These draft principles do not revise 

any existing, or create any new, 

information collections pursuant to the 

PRA. Therefore, the FDIC is not making 

a submission to OMB. 

V. Request for Comment 

The FDIC welcomes feedback on all 

aspects of these draft principles, 

including on the following questions. 

Among other uses, the FDIC would 

consider responses in connection with 

developing any future guidance on 

climate-related financial risks. 

A. Applicability 

Question 1: What additional factors, 

for example asset size, location, and 

business model, should inform financial 

institutions’ adoption of these 

principles? 

B. Tailoring 

Question 2: How could future 

guidance assist a financial institution in 

developing its climate-related financial 

risk management practices 

commensurate to its size, complexity, 

risk profile, and scope of operations? 

C. General 

Question 3: What challenges do 

financial institutions face in 

incorporating these draft principles into 

their risk management systems? How 

should the FDIC further engage with 

financial institutions to understand 

those challenges? 

Question 4: Would regulations or 

guidelines prescribing particular risk 

management practices be helpful to 

financial institutions as they adjust to 

doing business in a changing climate? 

D. Current Risk Management Practices 

Question 5: What specific tools or 

strategies have financial institutions 

used to successfully incorporate 

climate-related financial risks into their 

risk management frameworks? 

Question 6: How do financial 

institutions determine when climaterelated financial risks are material and 

warrant greater than routine attention by 

the board and management? 

Question 7: What time horizon do 

financial institutions consider relevant 

when identifying and assessing the 

materiality of climate-related financial 

risks? 

Question 8: What, if any, specific 

products, practices, and strategies—for 

example, insurance or derivatives 

contracts or other capital market 

instruments—do financial institutions 

use to hedge, transfer, or mitigate 

climate-related financial risks? 

Question 9: What, if any, climaterelated financial products or services— 

for example, ‘‘green bonds,’’ derivatives, 

dedicated investment funds, or other 

instruments that take climate-related 

considerations into account—do 

financial institutions offer to clients and 

customers? 10 What risks, if any, do 

these products or services pose? 

Question 10: How do financial 

institutions currently consider the 

impacts of climate-related financial risk 

mitigation strategies and financial 

products on households and 

communities, specifically LMI and other 

disadvantaged communities? Should the 

agencies modify existing regulations 

and guidance, such as those associated 

with the Community Reinvestment Act, 

to address the impact climate-related 

financial risks may have on LMI and 

other disadvantaged communities? 

E. Data, Disclosures, and Reporting 

Question 11: What, if any, specific 

climate-related data, metrics, tools and 

models from borrowers and other 

counterparties do financial institutions 

need to identify, measure, monitor, and 

control their own climate-related 

financial risks? How do financial 

institutions currently obtain this 

information? What gaps and other 

concerns are there with respect to these 

data, metrics, tools or models? 

Question 12: How could existing 

regulatory reporting requirements be 

augmented to better capture financial 


khammond on DSKJM1Z7X2PROD with NOTICES
19512 Federal Register / Vol. 87, No. 64 / Monday, April 4, 2022 / Notices 

institutions’ exposure to climate-related 

financial risks? 

F. Scenario Analysis 

Question 13: Scenario analysis is an 

important component of climate risk 

management that requires assumptions 

about plausible future states of the 

world. How do financial institutions use 

climate scenario models, analysis, or 

tools and what challenges do they face? 

Question 14: What factors are most 

salient for the FDIC to consider when 

designing and executing scenario 

analysis exercises? 

Federal Deposit Insurance Corporation. 

By order of the Board of Directors. 

Dated at Washington, DC, on March 29, 

2022. 

James P. Sheesley, 

Assistant Executive Secretary. 

[FR Doc. 2022–07065 Filed 4–1–22; 8:45 am] 

BILLING CODE 6714–01–P 

FEDERAL ELECTION COMMISSION 

[Notice 2022–10] 

Filing Dates for the Alaska Special 

Congressional Election 

AGENCY: Federal Election Commission. 

ACTION: Notice of filing dates for special 

election. 

SUMMARY: Alaska has scheduled special 

elections on June 11, 2022, and August 

16, 2022, to fill the U.S. House of 

Representatives seat in the At Large 

Congressional District held by the late 

Representative Don Young. Committees 

required to file reports in connection 

with the Special Primary Election on 

June 11, 2022, shall file a 12-day PrePrimary Report. Committees required to 

file reports in connection with both the 

Special Primary and Special General 

Election on August 16, 2022, shall file 

a 12-day Pre-Primary, a 12-day PreGeneral, and a 30-day Post-General 

Report. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Elizabeth S. Kurland, Information 

Division, 1050 First Street NE, 

Washington, DC 20463; Telephone: 

(202) 694–1100; Toll Free (800) 424– 

9530. 

SUPPLEMENTARY INFORMATION: 

Principal Campaign Committees 

All principal campaign committees of 

candidates who participate in the 

Alaska Special Primary and Special 

General Elections shall file a 12-day PrePrimary Report on May 30, 2022; a 12- 

day Pre-General Report on August 4, 

2022; and a 30-day Post-General Report 

on September 15, 2022. (See charts 

below for the closing date for each 

report.) 

Note that these reports are in addition 

to the campaign committee’s regular 

quarterly filings. (See charts below for 

the closing date for each report). 

Unauthorized Committees (PACs and 

Party Committees) 

Political committees not filing 

monthly are subject to special election 

reporting if they make previously 

undisclosed contributions or 

expenditures in connection with the 

Alaska Special Primary or Special 

General Elections by the close of books 

for the applicable report(s). (See charts 

below for the closing date for each 

report.) 

Committees filing monthly that make 

contributions or expenditures in 

connection with the Alaska Special 

Primary or Special General Elections 

will continue to file according to the 

monthly reporting schedule. 

Additional disclosure information for 

the Alaska special elections may be 

found on the FEC website at https://

www.fec.gov/help-candidates-andcommittees/dates-and-deadlines/. 

Disclosure of Lobbyist Bundling 

Activity 

Principal campaign committees, party 

committees and leadership PACs that 

are otherwise required to file reports in 

connection with the special elections 

must simultaneously file FEC Form 3L 

if they receive two or more bundled 

contributions from lobbyists/registrants 

or lobbyist/registrant PACs that 

aggregate in excess of $20,200 during 

the special election reporting periods. 

(See charts below for closing date of 

each period.) 11 CFR 104.22(a)(5)(v), (b), 

110.17(e)(2), (f). 

CALENDAR OF REPORTING DATES FOR ALASKA SPECIAL ELECTIONS

Report Close of books 1

Reg./Cert. & 

overnight mailing 

deadline 

Filing deadline 

Political Committees Involved in Only the Special Primary (06/11/2022) Must File 

Pre-Primary ................................................................................................................ 05/22/2022 05/27/2022 2 05/30/2022 

July Quarterly ............................................................................................................. 06/30/2022 07/15/2022 07/15/2022 

Political Committees Involved in Both the Special Primary (06/11/2022) and Special General (08/16/2022) Must File 

Pre-Primary ................................................................................................................ 05/22/2022 05/27/2022 2 05/30/2022 

July Quarterly ............................................................................................................. 06/30/2022 07/15/2022 07/15/2022 

Pre-General ............................................................................................................... 07/27/2022 08/01/2022 08/04/2022 

Post-General .............................................................................................................. 09/05/2022 09/15/2022 09/15/2022 

October Quarterly ...................................................................................................... 2 09/30/2022 10/15/2022 10/15/2022 

Political Committees Involved in Only the Special General (08/16/2022) Must File 

Pre-General ............................................................................................................... 07/27/2022 08/01/2022 08/04/2022 

Post-General .............................................................................................................. 09/05/2022 09/15/2022 09/15/2022 

October Quarterly ...................................................................................................... 09/30/2022 10/15/2022 2 10/15/2022 

1The reporting period always begins the day after the closing date of the last report filed. If the committee is new and has not previously filed 

a report, the first report must cover all activity that occurred before the committee registered as a political committee up through the close of 

books for the first report due. 2 Notice that this filing deadline falls on a weekend or federal holiday. Filing deadlines are not extended when they fall on nonworking days. 

Accordingly, reports filed by methods other than registered, certified or overnight mail, or electronically, must be received before the Commission’s close of business on the last business day before the deadline. 


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