The FCA has published a press release on the first meeting of the PRA and the FCA’s Climate Financial Risk Forum (CFRF). The objective of the CFRF is to share best practice across financial regulators and the industry to advance responses to financial risks from climate change. The forum brings together senior representatives from across the financial sector, including banks, insurers and asset managers.

The FCA states that firms are enhancing their approach to managing risks, but face barriers to implementing the forward-looking, strategic approach necessary to minimise the risks. The CFRF aims to reduce these barriers by developing practical tools and approaches to address climate-related financial risks.

The forum has set up four working groups to focus on risk management, scenario analysis, disclosure and innovation. The aim is to produce practical guidance on each of the four focus areas. The final outputs will be shared with industry more widely. Membership of the working groups will be wider than the forum to allow them to draw on expertise as necessary, such as from academia and industry.