BoE launches enhanced climate risk management expectations for banks and insurers

This supervisory statement (SS4/25) sets out the Prudential Regulation Authority’s (PRA) expectations for firms’ management of climate-related risks. It aims to ensure that firms build the capabilities and resilience needed to effectively manage these risks, covering supervisory expectations related to governance, scenario analysis, data and disclosures. The Bank of England claims its approach is “proportionate, practical, and reflects the evolving climate-related risk landscape”.