The Climate Financial Risk Forum publishes its guide to help the financial industry address climate-related financial risks
08 Jul, 2020
The Climate Financial Risk Forum (CFRF, jointly established in March 2019 by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA)) has published an industry guide addressing climate-related financial risks.
The objective of the guide is to help financial services firms, of all sizes, understand the risks that arise from climate change, and to provide support on how to integrate these risks into their strategy and decision-making processes.
Its four chapters provide recommendations on: disclosure of climate-related financial risks; effective risk management; scenario analysis; and opportunities for innovation in the interest of consumers. The guidance gives explanations, explains current and future requirements of governments and stakeholder groups, details barriers to change, and provides recommendations and best practices for implementation.
The press release and guide are available on the FCA website.
