Climate Financial Risk Forum (CFRF)

Established in 2019, the Climate Financial Risk Forum (CFRF) brings together senior financial sector representatives to share their experiences in managing climate-related risks and opportunities.

It is jointly chaired by Sarah Breeden (Executive Director of UK Deposit Takers, PRA) and Sheldon Mills (Director of Strategy and Competition, FCA). It reports to Sam Woods (CEO of the PRA and Deputy Governor at the Bank of England) and Nikhil Rathi (Chief Executive of the FCA).

The CFRF builds capacity and shares best practice across financial regulators and industry, to advance our sector’s responses to the financial risks from climate change.

Close collaboration between regulators and industry is crucial to: 

  • drive best practice 
  • make sure firms can manage risks arising from climate change and take advantage of opportunities to benefit consumers 
  • support the transition to net zero 

the DFRF has 2 working groups: 1) Adaptation, 2) Climate Financial Resilience. The groups are chaired by a CFRF member and supported by an external secretariat. Industry participants – including trade associations – are members, ensuring a broad range of firms is represented.

CFRF guides

The CFRF publishes guides helping the financial sector develop its approach to climate-related financial risks and opportunities. Written by industry, for industry, these help develop effective practice.

Theme Title Summary Date
Scenario analysis Learning from the 2021/22 Climate Biennial Exploratory Scenario (CBES)  Lessons from participants in the Bank of England’s Climate Biennial Exploratory Scenario (CBES). March 2023
Scenario analysis Asset Management Guide Latest thinking, as scenario analysis capability continues to mature across the asset management industry. March 2023
Disclosure, data and metrics The limitations of portfolio climate data Webinar covering on limitations of portfolio emissions data: Increased stakeholder interest, common pitfalls and possible approaches for assurance.  March 2023
Disclosure, data and metrics Forward-looking portfolio climate metrics Forward-looking portfolio climate metrics: what are they, are they reliable and should we use them?  March 2023
Disclosure, data and metrics Climate data coverage  Webinar on the importance of investment portfolio coverage, barriers to improvement, approaches to disclosure. March 2023
Disclosure, data and metrics Supporting content for webinars Additional information on topics covered in the 3 webinars recorded in March 2023 March 2023
Scenario analysis Online climate scenario analysis narrative tool Interactive tool generating a summary of climate-related risks and opportunities for firms based on business activities models, products, risks of the firm. Uses data from scenarios by the Central Banks and Supervisors Network for Greening the Financial System (NGFS). March 2023
Disclosure, data and metrics Climate Disclosures Dashboard Dashboard recommending metrics across 5 key disclosure categories – transition risk, physical risk, financed emissions and portfolio alignment, financing the transition and engagement. Tells users what metrics to disclose included and examples for producing these metrics. Metrics are 'Foundation', 'Stretch' and 'Advanced' so the Dashboard can benefit firms at different stages of their disclosure journey.  March 2023
Disclosure, data and metrics Industry Frameworks and Metrics in Relation to Green & Transition Finance Reviews survey as well as publicly available information on frameworks and examples of products and transactions, to identify emerging, consistent approaches to Green and Transition Finance. For firms looking to adopt an internal / bespoke or external green or transition framework. December 2022
Transition to net zero Mobilising Investment into Climate Solutions: Phase 1 Report Paper supporting financial institutions looking to finance reduced emissions in the real economy as part of a strategic and rounded approach to achieving net zero objectives, minimizing future risks and capturing the opportunities that the transition presents. Includes Framing Report with 3 sector-specific scoping notes: EV infrastructure, carbon capture and storage, CRE retrofitting. December 2022
Transition to net zero Disclosures: Managing Legal Risks Paper providing clarity on legal expectations and implications of climate disclosures since October 2021. Important as firms issue their own disclosures, and as they assess disclosures of their clients/investees to engage with them on their progress and to make investment/financing decisions. December 2022
Transition to net zero A Carbon Budget Primer for Financial Institutions Paper providing finance practitioners with a base-level understanding of the science behind the carbon budget, as well as its implications for financial institutions. December 2022
Scenario analysis Physical Risk Underwriting Guide Consolidating information on the modelling of physical climate-related risks. December 2022
Scenario analysis Scenario Analysis Guide for Banks Latest thinking as scenario analysis capability continues to mature in UK banking. December 2022
Scenario analysis Scenario Analysis in Financial Firms   Results of a deep dive on the maturity of fast-evolving climate scenario analysis practices in financial firms. December 2022
Scenario analysis Climate Litigation Risk Chapter Shortlist of cases for underwriters. December 2022
Scenario analysis Data and tools providers spreadsheet 

Database with information about specific climate risk products with product types including: models, datasets, ratings, hazard maps, frameworks 

December 2022
Risk management Risk appetite statements Practical advice on writing, implementing and maintaining an effective climate risk appetite statement. October 2021
Risk management Use cases

This guide contains use cases for: 

  • Section 2: Insurers 
  • Section 3: Asset Managers 
  • Section 4: Retail Banking 
  • Section 5: Corporate Banking
October 2021
Risk management Climate risk training Document offering practical advice on developing and implementing an effective climate risk training programme.  October 2021
Scenario analysis Implementation guide Practical guidance on how to use scenario analysis to assess climate-related financial risks to inform firms’ strategy and business decisions. October 2021
Disclosure Case studies Case studies from very different organisations, but cover common themes of broad interest to financial institutions looking to develop their climate risk approaches.  October 2021
Disclosure Managing legal risk Guide to managing legal risks associated with disclosure of climate-related data. October 2021
Innovation Commentary report Explores opportunities with moving to a net-zero, resilient economy, including case studies of actions to expand financing into the real economy through increasing supply of finance and enabling on the demand side, actions to finance transition assets, and improved use of data and metrics.  October 2021
Innovation Case study videos Highlights actionable innovation opportunities to mobilise financial capital and steward an economy-wide transition to meet climate targets. These videos show practical pilots and emerging and active innovation activities across the sector.  October 2021

While the FCA and PRA facilitate CFRF discussions, the views in this guide don’t necessarily represent the views of the regulators and are not regulatory guidance.

CFRF membership

Forum member Sector
Federated Hermes Asset manager
GAM Investments Asset manager
PIMCO Asset manager
Royal London Asset Management Asset manager
Schroders Asset manager
Universities Superannuation Scheme  Asset manager
Railpen Asset manager
Barclays Bank
Coventry Building Society Bank
JP Morgan Bank
NatWest Bank
Aviva Insurer
Lloyd's of London  Insurer
Phoenix Group Holdings plc Insurer
Rothesay Insurer
RSA Insurance Group  Insurer
Green Finance Institute  Other
London Stock Exchange Group  Other
UK Centre for Greening Finance and Investment Other

Page updates

: Editorial amendment table formatting
: Editorial amendment page updated as part of website refresh