General
Bank of England Proposes Enhanced Climate Risk Management for Financial Institutions
Written by Sebastian Höft
May 2, 2025
The Bank of England’s Prudential Regulation Authority (PRA) has released Consultation Paper CP10/25, proposing updates to Supervisory Statement SS3/19. This initiative aims to strengthen how banks and insurers manage climate-related financial risks.
The PRA emphasizes the need for firms to:Integrate climate risk considerations into governance structures.
- Enhance risk management practices to address climate-related exposures.
- Utilize long-term scenario analysis for strategic planning.
- Improve disclosures related to climate financial risks.
The consultation is open until July 31, 2025, inviting feedback from stakeholders. This move underscores the PRA’s commitment to ensuring the financial sector’s resilience against climate change impacts.
For more details, visit the Bank of England’s official announcement: BoE Announcement
