Bill > S588

This bill establishes the Advisory Committee on Climate Risk within the Financial Stability Oversight Council (FSOC). The Committee will consult with FSOC on an annual report on climate-related financial risks and meet with FSOC at least once a year. The bill requires FSOC to publish a report assessing the potential impact of climate risk on U.S. financial stability and make recommendations on how to improve the ability of the financial regulatory system to identify and mitigate climate financial risk. It also directs federal banking agencies and the National Credit Union Administration to update their supervisory guidance to address climate risk, and requires FSOC to update its guidance on designating non-bank systemically important financial institutions (SIFIs) to incorporate climate risk considerations. Additionally, the bill calls for the Federal Insurance Office to publish a report on the potential impact of climate risk on the insurance sector and ways to improve climate risk insurance regulation.