Today Tuesday 15 October 2019 is the deadline for PRA-regulated
insurers and banks to submit an updated Senior Management Function
(SMF) form, appointing a Senior Manager responsible for climate
change risk. Banks and insurers must also have an initial plan in
place to address the expectations of the PRA Supervisory Statement
on Enhancing banks' and insurers' approaches to
managing the financial risks from climate change SS3/19
published in April 2019.
The Supervisory Statement expects firms to fully embed
consideration of the financial risks of climate change into
governance frameworks. Firms are expected to identify, measure,
monitor and report on their exposures and should use regular
scenario analysis. Firms are also expected to develop and maintain
an appropriate approach to disclosure of climate-related financial
risks. This is not a straightforward task, but doing it well can
set businesses up for long-term success.
