FCA and PRA hosted the fourth meeting of the Climate Financial Risk Forum (CFRF) in July 2020. The Forum discussed how to publicize and promote the use of CFRF guide, which was published on June 29, 2020, by the financial services industry. The next CFRF meeting will take place in the fourth quarter of 2020. At the next meeting, the Forum will work to reach an agreement on the workplans and approaches and will discuss the possible next steps to support COP26, which is the international climate summit that the UK will host in November 2021.
CFRF agreed that, to maintain momentum in its early years, all current members would continue into the second year and that membership would be widened to include a small number of asset owners, along with other regulators that would be invited to observe. CFRF then went on to discuss the strategy for the second year of work. CFRF 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, disclosures, and innovation. Once the workplans are agreed between the regulators and the working group chairs, the working group membership will be refreshed to ensure that 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 each working group would have a two-fold focus. One of these areas of focus is to undertake a thematic piece of work on metrics, data, and methodologies while the second area of focus is to build on the CFRF guide, by progressing and refining the recommendations, particularly highlighting how firms can effectively implement these approaches.
Related Link: Meeting Update
Keywords: Europe, UK, Banking, Insurance, Securities, CFRF, Climate Change Risk, Climate Financial Risk Forum, ESG, Disclosures, Stress Testing, COP26, FCA, PRA
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