UK CFRF Publishes New Resources to Strengthen Climate and Nature Risk Management in Finance

The Financial Conduct Authority (FCA) has updated its Climate Financial Risk Forum (CFRF) webpage, announcing the release of a comprehensive suite of publications aimed at enhancing the financial sector's capacity to manage climate and nature-related risks. These are set out below.

• Developing an approach to nature risk in financial services – a second handbook on nature risk, offering practical guidance to banks, insurers and asset managers to understand, assess, and manage nature-related risks alongside climate risks.
• From risk to resilience: Integrating adaptation into finance – a toolkit for embedding resilience into financial strategies, covering data, modelling and incentive mechanisms across asset classes and geographies to address climate risks.
• Quantitative climate scenario analysis in financial decisions case studies – nine case studies showcasing how financial institutions quantify climate risks using scenario analysis across various sectors and geographies.
• Skilling up: training available on physical risks of climate change in the financial sector – identifying training gaps in financial institutions' understanding of how to use climate data, areas where capability-building and training are needed and recommendations to address these gaps.
• A risk professional's guide to physical risk assessments: A GARP benchmarking study of 13 vendors – findings from a benchmarking study assessing the variability and methodologies of physical risk assessments provided by 13 vendors and a checklist to support financial institutions in vendor selection and due diligence.

The online climate scenario narrative tool has also been updated.

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