Federal Reserve

Fed and ESG Regulations

The Federal Reserve mainly supervises ESG issues in the U.S. banking system and focuses on climate risk, such as formulating a bank climate regulatory framework and conducting bank climate scenario analysis.

The Fed’s supervisory policy focuses on understanding the impact of climate change on the banking system rather than formulating specific climate policies. The Federal Reserve is responsible for identifying, measuring, monitoring and managing climate risks, and specific climate policies should be formulated by government  (statement from the Federal Reserve’s official website).