The "Addressing Climate Financial Risk Act of 2026" establishes two new entities within the Financial Stability Oversight Council (FSOC) to address climate-related financial risks. It creates the Climate Financial Risk Committee , composed of staff from Council member agencies, to support the FSOC in identifying priority areas, coordinating information sharing, and assisting with data analysis. An Advisory Committee on Climate Risk is also established, comprising up to 30 members including climate science experts, climate economics experts, consumer advocates, and investor representatives, to consult and assist the Council with analysis and recommendations. The bill mandates that the FSOC, in coordination with these new committees, publish an annual report assessing the potential impact of climate-related risks on U.S. financial stability. This report must evaluate regulatory expertise, data quality, insurance market trends, and the management of climate risks by financial institutions, while also providing recommendations to improve the financial regulatory system. Federal banking agencies and the National Credit Union Administration are also required to update their supervisory guidance to incorporate climate financial risk for institutions with over $50 billion in assets. Additionally, the FSOC must update its guidance on designating nonbank systemically important financial institutions (SIFIs) to incorporate climate financial risk. The Federal Insurance Office (FIO) is tasked with publishing a report assessing climate financial risk's impact on the U.S. insurance sector and recommending regulatory improvements. The FIO must also collect and annually report granular homeowners insurance underwriting data disaggregated by zip code to assess climate-related risks across state insurance markets. Finally, the bill includes a Sense of Congress encouraging relevant federal financial regulatory agencies and the Department of the Treasury to enhance global coordination on climate financial risk, including joining international organizations focused on this issue.