Six large U.S. banks will participate in a pilot climate scenario analysis exercise that the Federal Reserve Board will launch in early 2023 and conclude around the end of the year.

The analysis will evaluate the resilience of financial institutions under various hypothetical climate scenarios. The exercise aims to improve the ability of supervisors and firms to measure and manage climate-related financial risks, according to a Sept. 29 news release.

The banks participating in the climate analysis exercise are Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc., JPMorgan Chase & Co., Morgan Stanley and Wells Fargo & Co.

The Fed board expects to publish insights from the exercise at an aggregate level without releasing company-specific information. There will be no capital or supervisory implications from the pilot.

The regulator will disclose details of the climate, economic and financial variables that comprise the climate scenario narratives at the start of the exercise. It will also provide more details on how the exercise will be conducted and the scenarios that will be used in the pilot in the coming months.