Emma BondThe Climate Financial Risk Forum (CFRF), which was established in 2019 and is chaired jointly by the PRA and FCA, has published its second set of guides (the ‘Session 2 guides’) to assist financial firms in managing and responding to climate-related risks. The guidance builds on previous guides that the CFRF published on 29 June 2020.
The new guidance consists of 10 deliverables published by the five CFRF working groups: risk management, scenario analysis, disclosure, innovation and climate data and metrics. They have been produced by industry, for industry and incorporate best practice. The deliverables take a range of forms including implementation guides and case studies.
In addition, the Scenario Analysis Working Group is developing an online climate scenario analysis tool where firms can input basic information relating to their business activities, products or risks to obtain a narrative description of climate risks and opportunities. The working group is aiming for this product to be live early in 2022.
