Federal Reserve Board announced a pilot project last week to measure the climate risk exposure of six major banks: Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo. Unlike bank stress tests, this project, which will take place over the course of 2023, will have no capital consequences or specific suggestions. Instead, the Fed will seek to measure the industry’s ability to gauge and respond to the climate risks it faces. But, Phillip Basil of Better Markets told Reuters, “Simply having a better understanding of the risks is not enough. The Fed and other federal banking agencies must incorporate identified climate-related financial risks into banks’ overall supervisory assessments and ratings to ensure the banks are addressing the risks instead of merely pointing them out.” (New York Times $, PoliticoPRO $, The Hill, Reuters)