The PRA and FCA have hosted the first meeting of the Climate Financial Risk Forum (CFRF) with the objective of sharing best practice in responses to the financial risks from climate change.

It brings together senior representatives from across the financial sector, including banks, insurers, and asset managers to discuss issues surrounding climate change and society’s response to it as it presents financial risks that are relevant to the PRA’s and FCA’s objectives.

Andrew Bailey, chief executive of the FCA, said: “The FCA and PRA have been working closely together, combining and building on our joint knowledge, to develop an approach which will enhance the UK financial system’s resilience to climate change. The Climate Financial Risk Forum will seek to encourage approaches in the financial sector, managing the financial risks from climate change as well as supporting innovation in green finance.'

At its first meeting, the forum decided to set up four working groups to focus on risk management, scenario analysis, disclosure, and innovation. Each working group will be chaired by a member of the forum and will meet more frequently than the CFRF, reporting back at each CFRF meeting.

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