Recent assessments have highlighted significant challenges faced by banks in managing climate-related financial risks. According to the Federal Reserve and statements from Wall Street banks, there are substantial data gaps and modeling challenges that complicate efforts to effectively gauge and manage these risks. Frank Elderson, Vice-Chair of the Supervisory Board, noted that while banks have improved their assessments, much work remains. Additionally, investors in renewable energy are urged to evaluate the climate-related financial risks in banks, and regulators are tasked with identifying the extent of banks' exposure to climate risks.