Climate-Related Risk and ESG Considerations for Banking Institutions

Summary

This practice note highlights emerging developments regarding environmental, social, and governance (ESG) disclosure and climate-related initiatives applicable to U.S. banking institutions. This resource also includes discussion on existing and proposed disclosure requirements of the Securities and Exchange Commission (SEC) related to material ESG matters, and explores the regulatory requirements that arose from the Biden Administration's Executive Order 14030 for federal agencies to review and improve controls and reporting of climate-related financial risks and the subsequent issuance of Executive Order 14154 issued on January, 20, 2025, by the Trump Administration, revoking Executive Order 14030 and neutralizing its impact on regulation and policy.