Background and launch in March 2019
Climate change and society’s response to it presents financial risks and opportunities that are relevant to the PRA’s and FCA’s objectives. While these risks may crystallise in full over time, they are becoming apparent now. Firms are enhancing their approaches to managing these 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 objective of the CFRF is to build capacity and share best practice across industry and financial regulators to advance our sector’s responses to the financial risks from climate change.
It brings together senior representatives from across the financial sector, including banks, insurers, and asset managers. The forum also includes observers from trade bodies to represent a broader range of firms and ensure the outputs of the CFRF are communicated to their members.
The forum is chaired by Sarah Breeden (Executive Director of UK Deposit Takers, PRA) and Christopher Woolard (Executive Director of Strategy and Competition, FCA). It meets 3 times a year and reports to Sam Woods (CEO of the PRA and Deputy Governor at the Bank of England) and Andrew Bailey (chief executive of the FCA).