Fourth meeting of the PRA and FCA’s joint Climate Financial Risk Forum

The Climate Financial Risk Forum (CFRF) met for a fourth time in July 2020.
Published on 14 August 2020

The FCA and PRA hosted the fourth meeting of the CFRF in July 2020. The co-chairs recognised all the hard work of the Forum members, in particular the working group chairs, members and secretariats, since the last Forum meeting in November leading up to the publication of the CFRF Guide on 29 June 2020. The Forum discussed how to publicise and promote use of the Guide by the financial services industry.

To maintain momentum in its early years, the Forum agreed that all current members would continue into the second year, and that membership would be widened to include a small number of asset owners alongside other regulators that would be invited to observe.

The Forum then went on to discuss the strategy for the second year of work.

The Forum agreed that the four existing working groups would continue with the current chairs and secretariats. These working groups address the topics of: risk management, scenario analysis, disclosure and innovation. Once the workplans are agreed between the regulators and the working group chairs, the working group membership will be refreshed to ensure there is an appropriate variety of skills and experiences around the table; this is likely to include a mix of existing and new members.

There was broad agreement that the focus of each working group would be two-fold:

  1. To undertake a thematic piece of work on metrics, data and methodologies; and
  2. To build on the Guide, by progressing and refining the recommendations, particularly highlighting how these approaches can be effectively implemented by firms.

The next CFRF meeting will take place in Q4 2020 where the workplans and approaches will be agreed and possible next steps to support COP26 – the international climate summit being hosted by the UK in November 2021 – will be discussed.