I 
117TH CONGRESS 
1ST SESSION H. R. 1549 
To establish the Advisory Committee on Climate Risk on the Financial 
Stability Oversight Council. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 3, 2021 
Mr. CASTEN (for himself, Ms. CASTOR of Florida, Ms. VELA´ZQUEZ, Mr. 
CLEAVER, Mr. LEVIN of California, and Ms. NORTON) introduced the fol-
lowing bill; which was referred to the Committee on Financial Services 
A BILL 
To establish the Advisory Committee on Climate Risk on 
the Financial Stability Oversight Council. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Addressing Climate 
Financial Risk Act of 2021’’. 
SEC. 2. ADVISORY COMMITTEE ON CLIMATE RISK. 
(a) IN GENERAL.—Subtitle A of the Financial Sta-
bility Act of 2010 (12 U.S.C. 5321 et seq.) is amended 
by inserting after section 121 (12 U.S.C. 5331) the fol-
lowing: 
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‘‘SEC. 121A. ADVISORY COMMITTEE ON CLIMATE RISK. 
‘‘(a) ESTABLISHMENT.—There is established in the 
Council the Climate Risk Advisory Committee, which 
shall— 
‘‘(1) consult with the Council in the drafting by 
the Council of an annual report on climate risk re-
quired under subsection (e) and other climate risk 
matters; and 
‘‘(2) meet with the Council not less frequently 
than once per year. 
‘‘(b) MEMBERSHIP.— 
‘‘(1) IN GENERAL.—The Committee shall con-
sist of the following members: 
‘‘(A) Four members who are climate 
science experts, of whom— 
‘‘(i) 1 shall be appointed by the Sec-
retary of Energy; 
‘‘(ii) 1 shall be appointed by the Ad-
ministrator of the Environmental Protec-
tion Agency; and 
‘‘(iii) 2 shall be appointed by the Di-
rector of the National Science Foundation. 
‘‘(B) Eight members who are experts in 
climate economics or climate financial risk ap-
pointed by the Council, of whom not fewer than 
1 member is each an expert in— 
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‘‘(i) insurance; 
‘‘(ii) capital markets; 
‘‘(iii) banking; 
‘‘(iv) international financial markets; 
‘‘(v) housing; and 
‘‘(vi) the perspective of asset owners. 
‘‘(2) PROHIBITION.—No member of the Com-
mittee may be employed by a company within the ju-
risdiction of a member agency of the Council. 
‘‘(c) TERM.—The members of the Committee shall be 
appointed for 3-year terms, except that the initial terms 
of the first members of the Committee shall be staggered 
so that— 
‘‘(1) 4 members serve terms of 3 years; 
‘‘(2) 4 members serve terms of 2 years; and 
‘‘(3) 4 members serve terms of 1 years. 
‘‘(d) CONSULTATION.—The Council shall consult 
with the Committee in carrying out the requirements of 
this section. 
‘‘(e) REPORT ON CLIMATE FINANCIAL RISK.—Not 
later than 270 days after the date of enactment of this 
section, the Council shall, in coordination with the Com-
mittee and the Deputies Committee of the Council, publish 
a report that— 
‘‘(1) assesses— 
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‘‘(2) provides recommendations based on the as-
sessments in paragraph (1) to Federal and State fi-
nancial regulatory agencies and to Congress on how 
to improve the ability of the financial regulatory sys-
tem in the United States to identify and mitigate cli-
mate financial risk. 
‘‘(f) MEMBER AGENCIES.—Each member agency 
should develop and make publicly available a strategy to 
identify and mitigate climate financial risk within the ju-
risdiction of the member agency. 
‘‘(g) COORDINATION.—The Council should— 
‘‘(1) facilitate the sharing of best practices on 
climate financial risk across agencies; and 
‘‘(2) assign the Office of Financial Research to 
conduct ongoing research into climate financial risk. 
‘‘(h) INCLUSION IN ANNUAL REPORT.—The Council 
shall include a section on climate financial risk in— 
‘‘(1) the annual report of the Council to Con-
gress; and 
‘‘(2) if relevant, in any other report to Con-
gress.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.— 
The table of contents of the Dodd-Frank Wall Street Re-
form and Consumer Protection Act in section 1(b) of that 
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Act is amended by inserting after the item relating to sec-
tion 121 the following: 
‘‘Sec. 121A. Advisory Committee on Climate Risk.’’. 
SEC. 3. UPDATE ON SUPERVISORY GUIDANCE ON CLIMATE 
RISK. 
(a) DEFINITION.—In this section, the term ‘‘Federal 
banking agency’’ has the meaning given the term in sec-
tion 2 of the Dodd-Frank Wall Street Reform and Con-
sumer Protection Act (12 U.S.C. 5301). 
(b) UPDATE.—Each Federal banking agency and the 
National Credit Union Administration shall update appli-
cable supervisory guidance to include climate risk, includ-
ing credit, liquidity, market, operational, and reputational 
risk to ensure that supervised financial institutions appro-
priately identify and mitigate climate financial risk. 
(c) COORDINATION.—The Federal Financial Institu-
tions Examination Council shall ensure that the guidance 
updated under subsection (b) is— 
(1) appropriately coordinated among the Fed-
eral banking agencies and the National Credit Union 
Administration; and 
(2) shared with State regulators. 
SEC. 4. UPDATE NONBANK SIFI DESIGNATION GUIDANCE. 
The Financial Stability Oversight Council shall up-
date subpart B of part 1310 of title 12, Code of Federal 
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Regulations, to specify how the Council will incorporate 
climate risk into determinations described in that subpart. 
SEC. 5. FIO REPORT ON INSURANCE REGULATION AND CLI-
MATE RISK. 
Not later than 1 year after the date of enactment 
of this Act, the Federal Insurance Office shall publish a 
report that— 
(1) assesses the potential impact of climate fi-
nancial risk on the insurance sector in the United 
States; and 
(2) recommends ways to modernize and improve 
the system of climate risk insurance regulation in 
the United States. 
SEC. 6. IMPROVE GLOBAL COORDINATION. 
It is the sense of Congress that relevant Federal fi-
nancial regulatory agencies and the Department of the 
Treasury, if relevant, should— 
(1) join the Network for Greening the Financial 
System and other international organizations fo-
cused on climate financial risk; 
(2) formally join the Task Force on Climate- 
Related Financial Risks of the Basel Committee on 
Banking Supervision; and 
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(3) work with international regulators on cli-
mate financial risk whenever possible, consistent 
with United States law. 
Æ 
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