Earlier this year we reported on PRA Policy Statement 11/19: Enhancing banks’ and insurers’ approaches to managing the financial risks from climate change (PS11/19). In PS11/19 the PRA provided feedback to the responses to its earlier consultation on banks’ and insurers’ approaches to managing financial risks from climate change and set out its final supervisory statement on the subject (Supervisory Statement 3/19: Enhancing banks’ and insurers’ approaches to managing the financial risks from climate change) (SS 3/19).

The PRA’s expectations in SS 3/19 took effect on the publication of PS11/19.

The PRA also expects firms to have an initial plan in place to address the expectations and submit an updated Senior Management Function (SMF) form by Tuesday 15 October 2019. However, firms should note that expectations on firms and SMF holder(s) will take into consideration the evolving understanding of what best practice looks like.