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

The Climate Financial Risk Forum (CFRF) met for the eighth time in October 2021.
Published on 20 December 2021

The Forum discussed the future strategy for the CFRF in the next phase of work (Session 3). The Forum agreed to continue the work of the Scenario Analysis Working Group, incorporating the cross-cutting work on climate data and metrics into the Disclosure Working Group. The Forum agreed to temporarily pause the work on risk management to allow new tools and guidance produced by the CFRF’s Risk Management Working Group to be considered and, as appropriate, implemented by firms. 

Members also discussed new areas where it may be useful to focus the CFRF’s future efforts. The Forum supported a proposal to establish a working group in Session 3 focussed on the transition to net zero. Members considered proposals to undertake work in Session 3 on a broader range of environmental and sustainability issues. However, it was felt that climate should remain the primary focus for Session 3. 

It was noted that after two years of operating, Session 3 provides an opportunity to refresh the Forum membership to ensure it reflects the industry, brings in new viewpoints and expertise to the collective benefit of the CFRF while providing the necessary capacity required to support the work of the CFRF. It is important that any change maintains continuity whilst creating opportunities for other firms to participate. As such, it is suggested that up to half of the membership could be rotated. Members noted the intention to invite expressions of interest from existing Members and a call for interest would be published on both the PRA and the FCA’s CFRF website.

Members also discussed and approved the Forum’s Session 2 outputs and the timeline for publishing them, as well as the pre-COP26 launch event to highlight the CFRF’s Session 2 work.

The next CFRF meeting will take place in Q1 2022, following completion of the CFRF membership refresh.

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