The pilot exercise will be launched in early 2023 and is expected to conclude around the end of the year. At the beginning of the exercise, the Board will publish details of the climate, economic, and financial variables that make up the climate scenario narratives.

Over the course of the pilot, participating firms will analyze the impact of the scenarios on specific portfolios and business strategies. The Board will then review firm analysis and engage with those firms to build capacity to manage climate-related financial risks. The Board anticipates publishing insights gained from the pilot at an aggregate level, reflecting what has been learned about climate risk management practices and how insights from scenario analysis will help identify potential risks and promote risk management practices. No firm-specific information will be released.

Climate scenario analysis is distinct and separate from bank stress tests.

https://www.federalreserve.gov/newsevents/pressreleases/other20220929a.htm#:~:text=The%20Federal%20Reserve%20Board%20on%20Thursday%20announced%20that,firms%20to%20measure%20and%20manage%20climate-related%20financial%20risks.