This legislation, titled the Climate Change Financial Risk Act of 2025, requires the Board of Governors of the Federal Reserve System to develop and conduct comprehensive financial risk analyses concerning climate change. It establishes a Climate Risk Scenario Technical Development Group , comprising climate scientists and economists, to provide recommendations for scenario development and assess financial risks. This group will also offer technical assistance to financial entities in evaluating both physical and transition risks. Within one year of enactment, the Board of Governors, in coordination with designated climate science leads, must develop three distinct climate change risk scenarios. These scenarios will project average global temperature increases of 1.5 degrees Celsius, 2 degrees Celsius, and a third based on currently implemented national climate policies. The development process must consider a wide range of physical risks and transition risks , including disruptions to supply chains, changes in asset values, and impacts on labor productivity, while also coordinating with international banking supervisors. The bill amends the Financial Stability Act of 2010 to mandate biennial analyses for large financial institutions, termed covered entities , to evaluate their capital adequacy under these climate change risk scenarios. The initial three analyses will be exploratory, with no adverse consequences, but their summaries will be made public. Subsequently, covered entities must submit climate risk resolution plans outlining their strategies and capital policies to address identified vulnerabilities, with the Board having the authority to object to inadequate plans. Furthermore, the legislation requires the Board of Governors to develop and administer a biennial sub-systemic exploratory survey for smaller financial institutions, referred to as surveyed entities . This survey will assess their resilience to climate scenarios, identify concentrations of climate-related business activities, and understand their adaptation plans. The aggregated results of these surveys will be publicly reported, though individual entities will not be identified.