Legal & Regulatory News
Climate Financial Risk Forum releases 'Session 2 Guides' on climate-related financial risk management
21 October 2021On 21 October 2021, the Climate Financial Risk Forum (CFRF) released its second set of guides, the 'Session 2 guides', addressing climate-related financial risks and opportunities. Reflecting input from banks, asset managers and insurers, the Session 2 guides build upon the initial guide released by the CFRF in June 2020 and they may be summarised into following five points:
- Risk management: a number of documents have been released in order help retail and corporate banks, insurers and asset managers produce and implement risk appetite statements that incorporate climate-related financial risks.
- Scenario analysis: the CFRF published guidance on how to use scenario analysis to assess climate-related financial risks and inform business decisions as well as a database of climate risk data providers.
- Disclosure: the CFRF has released case studies on climate action as well as documentation on the legal risk associated with publishing climate-related disclosure.
- Innovation: the CFRF has published resources on actionable innovation opportunities which assist in the transition to net-zero.
- Climate data and metrics: a further report was published by the CFRF recommending five key areas in which the use of climate-related metrics would be integral. The report also details guidance on producing a set of common and consistent climate metrics.
Click here to access each of the outputs from the Session 2 guides.