Legal & Regulatory News

UK PRA publishes Dear CEO letter clarifying expectations on firms' management of climate-related financial risks

The UK Prudential Regulation Authority (PRA) has published a Dear CEO letter from Sam Woods, Deputy Governor and CEO of the PRA, addressed to all PRA-regulated firms. The letter follows on from the expectations set out in Supervisory Statement 3/19 (SS3/19), providing feedback and clarifying expectations on timings in relation to firms' climate-related financial risk implementation plans.

In particular, the letter states that firms should have fully embedded their approaches to managing climate-related financial risks in line with the expectations set out in SS3/19 by the end of 2021, and should be able to demonstrate this.

Click here to access the Dear CEO letter.

Click here to access SS3/19.