Six large U.S. banks will participate in a Federal Reserve pilot program designed to examine banks’ climate-related financial risks.
The Fed said in a press release Thursday that Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo will participate in the program, which is expected to begin early next year.
The pilot is will likely end in late 2023.
The banks will analyze the impact of various climate, economic and financial variables on specific portfolios and business strategies. The Fed plans to analyze the findings and engage with the banks to improve their ability to manage climate-related financial risks.
Aggregate data, rather than bank-specific metrics, will be released.
The Fed said that, in coming months, it will provide more details on how the pilot will be conducted and the scenarios that will be used.