The New York Department of Financial Services finalized guidance on how banks and mortgage institutions should manage climate-related financial and operational risks. The agency’s guidance creates extensive obligations for New York institutions, particularly mortgage lenders and servicers for which those risk management expectations may be new. Also, the NYDFS emphasizes that those institutions must still recognize the interplay between safe-and-sound climate risk policies and the goal of providing access to affordable credit to all communities and customers. NYDFS will begin requesting information from institutions on their climate risk progress and plans during 2024.

Read about the NYDFS final Climate Risk Management Guidance in Mayer Brown’s Legal Update.