‘‘(A) that originate from natural forest 
ecosystems, either— 
‘‘(i) directly from within forest areas; 
or 
‘‘(ii) from areas previously under for-
est cover; and 
‘‘(B) the extraction or production of which 
contributes significantly to the conversion of 
natural forest to agriculture, tree plantation, or 
other non-forest land use. 
‘‘(3) 
FINANCED
GREENHOUSE
GAS
EMIS-
SIONS.—The term ‘financed greenhouse gas emis-
sions’ means, with respect to a covered bank holding 
company, the share of the emissions of such com-
pany attributable to investment in, or the providing 
of financial services to, a company or project of a 
company, including— 
‘‘(A) investments in a debt or equity in-
vestment in such another company or the assets 
of such another company; 
‘‘(B) project finance investment; 
‘‘(C) underwriting; 
‘‘(D) syndication or securitization of loans 
or asset-backed securities; 
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‘‘(E) derivative transactions related to fi-
nancing or hedging; and 
‘‘(F) market making. 
‘‘(4) FOSSIL FUEL FINANCING.—The term ‘fos-
sil fuel financing’ means, with respect to a covered 
bank holding company, investment in— 
‘‘(A) a company that derives 15 percent or 
more of revenue from exploration, extraction, 
processing, exporting, transporting, and any 
other significant action with respect to oil, nat-
ural gas, coal, or any byproduct thereof; or 
‘‘(B) a fossil fuel project. 
‘‘(5) FOSSIL FUEL PROJECT.—The term ‘fossil 
fuel project’ means a project intended to— 
‘‘(A) facilitate or expand exploration, ex-
traction, processing, exporting, transporting, or 
any other significant action with respect to oil, 
natural gas, coal; or 
‘‘(B) construct any infrastructure related 
to the activities in subparagraph (A), such as 
wells, pipelines, terminals or refineries. 
‘‘(6) 
NEW
OR
EXPANDED
FOSSIL
FUEL 
PROJECT.—The term ‘new or expanded fossil fuel 
project’ means a fossil fuel project that would in-
crease the— 
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‘‘(A) level of proven or developable oil, nat-
ural gas or coal reserves; 
‘‘(B) midstream throughput of pipelines, 
terminals or refineries; or 
‘‘(C) generating capacity of oil, natural gas 
or coal. 
‘‘(7) NATURAL
FOREST.—The term ‘natural 
forest’ means a natural arboreal ecosystem that— 
‘‘(A) has a species composition a signifi-
cant percentage of which is native species; and 
‘‘(B) contains a tree canopy cover of more 
than 10 percent over an area of not less than 
0.5 hectares. 
‘‘(8) SCIENCE-BASED
EMISSIONS
TARGETS.— 
The term ‘science-based emissions targets’ means re-
duction in greenhouse gas emissions consistent with 
preventing an increase in global average temperature 
of greater than or equal to 1.5 degrees Celsius com-
pared to pre-industrial levels.’’. 
SEC. 3. CONTRIBUTION TO CLIMATE CHANGE INCLUDED IN 
FSOC DESIGNATION. 
(a) AUTHORITY TO REQUIRE SUPERVISION
AND 
REGULATION OF CERTAIN NONBANK FINANCIAL COMPA-
NIES.—Section 113 of the Dodd-Frank Wall Street Re-
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form and Consumer Protection Act (12 U.S.C. 5323) is 
amended— 
(1) in subsection (a)(2)— 
(A) in subparagraph (J), by striking ‘‘and’’ 
at the end; 
(B) by redesignating subparagraph (K) as 
subparagraph (L); and 
(C) by inserting after subparagraph (J) 
the following: 
‘‘(K) the extent to which the company 
makes a non-trivial contribution to the financed 
greenhouse gas emissions (as defined in section 
15(f) of the Bank Holding Company Act of 
1956) of the financial system of the United 
States;’’; and 
(2) in subsection (b)(2)— 
(A) in subparagraph (J), by striking ‘‘and’’ 
at the end; 
(B) by redesignating subparagraph (K) as 
subparagraph (L); and 
(C) by inserting after subparagraph (J) 
the following: 
‘‘(K) the extent to which the company 
makes a non-trivial contribution to the financed 
greenhouse gas emissions (as defined in section 
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15(f) of the Bank Holding Company Act of 
1956) of the financial system of the United 
States; and’’. 
(b) ENHANCED
SUPERVISION
AND
PRUDENTIAL 
STANDARDS FOR NONBANK FINANCIAL COMPANIES SU-
PERVISED BY THE BOARD OF GOVERNORS AND CERTAIN 
BANK HOLDING COMPANIES.— 
(1) DEVELOPMENT
OF
PRUDENTIAL
STAND-
ARDS.—Section 115(b)(1) of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act (12 
U.S.C. 5325(b)(1)) is amended— 
(A) in subparagraph (H), by striking 
‘‘and’’; 
(B) in subparagraph (I), by striking the 
period at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(J) divestiture of financed greenhouse gas 
emissions (as defined in section 15 of the Bank 
Holding Company Act of 1956).’’. 
(2) 
REQUIRED
STANDARDS.—Section 
165(b)(1)(A) of the Dodd-Frank Wall Street Reform 
and 
Consumer 
Protection 
Act 
(12 
U.S.C. 
5365(b)(1)(A)) is amended— 
(A) in clause (iv), by striking ‘‘and’’; 
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