This supervisory statement sets out the Prudential Regulation Authority’s (PRA) expectations for firms’ approaches to managing climate-related risks. It aims to ensure that firms build the capabilities and resilience needed to effectively manage these risks.
The approach is proportionate, practical, and reflects the evolving climate-related risk landscape.
The supervisory statement:
- describes the transmission channels through which climate-related risks can arise and the characteristics of these risks which, when considered together, present unique challenges and require a strategic management approach;
- sets out the implementation of the expectations, including the PRA’s approach to the proportionate application of the expectations by firms;
- covers supervisory expectations related to governance, risk management, climate scenario analysis, data, and disclosures; and
provides additional context for banking and insurance specific issues.
Current version
Published on 3 December 2025
Supervisory statement 4/25 – December 2025 (PDF)
- Following PS25/25 – Enhancing banks’ and insurers’ approaches to managing climate-related risks