US Banking Agencies' Withdrawal from Climate Risk Network

GAO Reports

Published March 26th, 2026

Detected March 26th, 2026

Summary

The GAO reported that the Federal Reserve, OCC, and FDIC joined the Network of Central Banks and Supervisors for Greening the Financial System (NGFS) between 2020 and 2022 to understand climate risks. The agencies withdrew in 2025, citing changed priorities and inconsistency with their safety and soundness mandates.

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What changed

This GAO report details the participation and subsequent withdrawal of three major US banking regulators—the Federal Reserve, the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC)—from the Network of Central Banks and Supervisors for Greening the Financial System (NGFS). The agencies joined the NGFS between 2020 and 2022 to collaborate on climate-related financial risks, participating in working groups and reviewing publications. However, they collectively withdrew in 2025, citing a shift in agency priorities, a determination that continued participation conflicted with their statutory mandates for financial institution safety and soundness, and the NGFS's expanding focus on broader environmental issues.

While the agencies participated in NGFS activities, they did not implement NGFS recommendations, provide nonpublic supervisory data, or incur direct funding costs, with participation primarily involving staff time. The withdrawal signifies a recalibration of these agencies' engagement with international climate risk initiatives. Compliance officers should note that while the US banking agencies were involved in understanding climate risks through this forum, their statutory duties to ensure financial stability took precedence, leading to their disengagement. No immediate compliance actions are required for regulated entities based on this report, as it concerns the agencies' own participation in an external network rather than new regulatory requirements.

Source document (simplified)

GAO-26-108020 Published: Mar 26, 2026. Publicly Released: Mar 26, 2026.

Fast Facts

The Network of Central Banks and Supervisors for Greening the Financial System is a forum for sharing best practices and working on climate-related financial risk. The Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation became members in 2020, 2021, and 2022, respectively.

These agencies joined to collaborate with other central banks and supervisors. They participated in working groups and retained related records but did not implement the network's recommendations.

The agencies withdrew from this forum in 2025, generally citing changed agency priorities.

Highlights

What GAO Found

The Network of Central Banks and Supervisors for Greening the Financial System (NGFS) is an international network of central banks and financial supervisors that works to address climate risk management in the financial sector. Its steering committee forms working groups, which in 2024 issued 19 publications, including updates to climate-scenario analyses and guidance on sustainable investment. NGFS is funded by voluntary, in-kind member contributions and external project support.

The Board of Governors of the Federal Reserve (Federal Reserve), Office of the Comptroller of the Currency (OCC), and Federal Deposit Insurance Corporation (FDIC) joined NGFS in 2020, 2021, and 2022, respectively, to better understand climate-related financial risks and collaborate internationally. They withdrew in 2025, generally citing (1) changed agency priorities, (2) a determination that continued participation was inconsistent with their statutory mandates to ensure safety and soundness of financial institutions, and (3) NGFS’s increasing focus on broader environmental risks.

The banking agencies participated in NGFS meetings and working groups, responded to surveys, and reviewed draft publications. Costs related to NGFS participation were for staff time and did not include providing funding to NGFS, according to GAO’s document review and interviews with officials. Officials reported that the agencies shared limited information with NGFS, did not provide nonpublic supervisory data or adopt NGFS recommendations, and retained records in accordance with agency retention policies. NGFS-related records are confidential and not disclosed, except as compelled by law, according to the NGFS charter.

Federal Reserve, FDIC, and OCC Participation in 2022–2024 NGFS Working Groups

| | | Federal Reserve | OCC | FDIC |
| --- | --- | --- | --- | |
| Workstreams | Supervision | ✓ | ✓ | ✓ |
| Scenario design and analysis | ✓ | ✓ | ✓ | |
| Monetary policy | ✓ | | | |
| Net zero for central banks | ✓ | | | |
| Task forces | Adaptation | | | |
| Capacity building and training | | ✓ | ✓ | |
| Biodiversity loss and natureâ€‘related risks | ✓ | ✓ | ✓ | |
| Expert networks | Legal | ✓ | ✓ | |
| Research | ✓ | ✓ | | |
| Data | ✓ | ✓ | | |
Source: GAO analysis of Board of Governors of the Federal Reserve System (Federal Reserve), Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), and Network of Central Banks and Supervisors for Greening the Financial System (NGFS) information. | GAO-26-108020

Notes: The Workstream on Supervision incorporates climate-related risks within regulatory practices. The Workstream on Net Zero for Central Banks integrates sustainability into corporate operations. The Task Force on Adaptation promotes measures to respond to climate-related variables, which moderate harm or take advantage of opportunities.

Why GAO Did This Study

Established in 2017, NGFS serves as a forum for sharing best practices and conducting analysis on climate risk management in the financial sector. It has advocated for mobilizing capital for low-carbon investments. As of January 2026, it had 149 members from more than 92 countries.

GAO was asked to examine the banking agencies’ membership in NGFS. This report describes why the Federal Reserve, OCC, and FDIC joined and later withdrew, and the extent to which the agencies participated in activities and shared information with NGFS while they were members.

GAO reviewed the NGFS charter, annual reports, and publications. GAO also reviewed agency documentation on NGFS membership, activities, and records retention policies. In addition, GAO reviewed written responses from NGFS and interviewed representatives from the three banking agencies, and three industry and climate change organizations.

For more information, contact Michael E. Clements at clementsm@gao.gov.

Full Report

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GAO Contacts

Michael Clements Director Financial Markets and Community Investment clementsm@gao.gov

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Sarah Kaczmarek Managing Director Office of Public Affairs media@gao.gov

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Topics

Financial Markets and Institutions Federal deposit insurance Climate Central banks Risk management Financial institutions Publications Financial systems Financial risks International organizations Safety and soundness