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Finance Working Groups on CC 15 March 2019

Working groups established to help finance sector deal with climate change (via City AM)

By Harry Robertson

Four working groups have been set up to deal with the risks climate change poses to the UK’s financial system, the Bank of England and the Financial Conduct Authority (FCA) said.

The groups will focus on risk management, scenario analysis, disclosure and innovation, the groups said. The decision was made at the first meeting of the Climate Financial Risk Forum (CFRF) on Friday, but was announced today.

The forum saw major players from across Britain’s financial sector such as HSBC, JP Morgan, Blackrock and the London Stock Exchange Group convene to discuss how to “practical tools and approaches to address climate–related financial risks”, according to the Bank of England’s Prudential Regulation Authority (PRA) and FCA.

Climate change poses a “major threat to the future stability of the financial system”, the PRA and FCA said, for example through extreme weather events and government climate policies. The Bank of England has previously highlighted how financial losses due to extreme climate could hurt the City due to the interconnected nature of modern finance.

Read more via City AM…