Climate Financial Risk Forum (CFRF) Session 3 – Minutes July 12, 2022

The FCA and the PRA hosted the second meeting of the third session of the CFRF on July 12, 2022.

Since the last meeting of the Forum in April 2022, the chairs, members and secretariat of the working group have made progress in their respective areas of work on scenario analysis, disclosure, data and measurement and transition to the net zero. The Forum discussed the progress made by each working groupFootnote [1] to date, including the expected results for Session 3 and the timing of their publication.

Members agreed on the importance of considering the links between the working groups and the need to ensure that collectively the results continue to support capacity building and the dissemination of effective practices by industry, for industry. Members also discussed how the Forum can help the industry meet the challenges posed by the current external environment and what this means for companies’ near-term plans to manage climate-related financial risks while considering longer-term plans in support of greenhouse gas reduction goals. emissions.

The Forum then discussed the challenges companies face in meeting the requirements of the UK’s climate-related disclosure requirements at the same time as the disclosure requirements of other jurisdictions. Forum members noted that industry broadly supports the climate-related disclosure requirements proposed by the International Sustainability Standards Board (ISSB).

Members noted the pace of implementation and the variation in disclosure requirements between jurisdictions. Members felt that, to the extent possible, global reference standards should be interoperable with any other jurisdiction-specific reporting standards.

The next CFRF meeting will take place in October 2022.

Martin E. Berry