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

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

Since the last Forum meeting in April 2022, the Working Group chairs, members, and secretariat have been progressing their respective area of work on scenario analysis, disclosure, data and metrics and transition to net zero. The Forum discussed the progress made by each Working Group^{footnote [1]} to date, including planned outputs for Session 3 and the timeline for publishing them.

Members agreed the importance of considering the inter-linkages between Working Groups and the need to ensure that collectively the outputs continue to support capacity building and dissemination of effective practice by industry, for industry. Members also discussed how the Forum can help industry navigate the challenges posed by the current external environment and what it means for firms’ near-term plans for managing climate-related financial risks while considering longer-term plans in support of targets to reduce greenhouse gas emissions.

The Forum then discussed the challenges firms face in meeting the requirements of the UK’s climate-related disclosure requirements concurrently with the disclosure requirements of other jurisdictions. Forum members noted that industry is broadly supportive of climate-related disclosure requirements proposed by the International Sustainability Standards Board (ISSB).

Members noted the pace of implementation and variance in disclosure requirements between jurisdictions. Members felt that where possible, global baseline standards must be interoperable with any additional specific jurisdiction reporting standards.

The next CFRF meeting will take place in October 2022.