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

The PRA and FCA hosted the fifth meeting of the Climate Financial Risk Forum (CFRF) in November 2020.
Published on 08 December 2020

The co-chairs welcomed one new member organisation, the Universities Superannuation Scheme (USS) and two new observers, The Pensions Regulator (TPR) and the Financial Reporting Council (FRC).

Since the publication of the CFRF Guide in June and the last Forum meeting in July, the working group chairs, members and secretariats have been considering how they can further their respective topics of risk management, scenario analysis, disclosure and innovation. The CFRF noted the importance of progress in the development and understanding of climate data and metrics.  Given this, it was decided that data and metrics should be a thematic topic that is addressed by all Forum working groups in the next phase of work.  The Forum discussed each working group’s plans and the progress made to date. There was a specific discussion on the extent to which plans cater for the needs of smaller financial firms and how engagement with these firms would be undertaken over the coming period.

The Forum noted the importance of the 26th UN Climate Change Conference of the Parties (COP26), a major international climate summit being hosted by the UK in November 2021. It was agreed that the CFRF should explore ways that it can support the COP26 aims.  

The next CFRF meeting will take place in Q1 2021 where a programme of deliverables will be agreed and next steps to engage with external stakeholders ahead of COP26 will be discussed.