On May 9, 2024, the Board of Governors of the Federal Reserve System released a report summarizing the findings of its exploratory Pilot Climate Scenario Analysis Exercise. The Federal Reserve conducted the pilot exercise in 2023 with the six largest U.S. banks to learn about their climate risk management practices and challenges and to enhance the ability of large banks and supervisors to identify, monitor, and manage climate-related financial risks. The report describes how participating banks are using climate scenario analysis to explore the resiliency of their business models to climate-related financial risks. The Federal Reserve observed that participants took a wide range of approaches in the exercise and that the exercise highlighted data gaps and modeling challenges that arise when estimating the financial impacts of highly complex and uncertain climate-related financial risks over various time horizons. The Federal Reserve noted that it will draw on lessons learned from the exercise and continue to engage with participants regarding their capacity to measure and manage climate-related financial risks.