; and (ii) drastically increase insured and uninsured losses; (5) advances in energy efficiency and renewable energy technologies, as well as climate policies and shifting societal preferences, will— (A) reduce global demand for fossil fuels; and (B) expose transition risks for fossil fuel companies and investors, which could include trillions of dollars of stranded assets around the world; (6) climate change poses uniquely far-reaching risks to the financial services industry, including with respect to underwriting, credit, and market risks, due to the number of sectors and locations impacted and the potentially irreversible scale of damage; (7) financial institutions must take a consistent approach to assessing climate-related financial risks and incorporating those risks into existing risk management practices, which should be informed by scenario analysis; (8) the Board of Governors conducts annual assessments of the capital adequacy and capital planning practices of the largest and most complex banking organizations (referred to in this section as stress tests ) in order to promote a safe, sound, and efficient banking and financial system; (9) as of the date of enactment of this Act, the stress tests conducted by the Board of Governors are not designed to reflect the physical risks or transition risks posed by climate change; and (10) the Board of Governors— (A) has the authority to take into account the potentially systemic impact of climate-related risks on the financial system