FCA publishes Climate Change Adaptation Report

The FCA has (yesterday)  published further information on their response to climate change.

Information from their recently appointed Head of ESG, Sacha Sedan, reads as follows:

Today we have published our Climate Change Adaptation Report. The report sets out our assessment of how we and the firms we regulate are adapting to climate change.

Our report sets out the actions we and the financial services industry have taken to adapt to the challenges of climate change. It is set within the context of our strategic approach to climate change, including the transition to net zero by 2050. The report outlines:

• our climate change and Environmental, Social and Governance (ESG) strategy and how it is evolving
• a timeline of our major ESG publications between now and next summer
• the climate-related risks that financial services firms are exposed to, including insurance underwriting risk, credit risk, financial market risk and operational risk
• how firms are addressing and adapting to these climate-related risks and opportunities
• how firms and listed companies are planning to transition to net zero
• the role of capital mobilisation in financing both climate change adaptation and climate change mitigation

While our Climate Change Adaptation Report has not been published for consultation, we welcome stakeholders’ comments and your engagement on climate matters generally. This is a fast-moving and important topic and we want to learn from your feedback. Please send any comments to CAR-Feedback@fca.org.uk .

Information published also highlighted their recently published joint statement with the Prudential Regulation, PRA, TPR and FRC which responds to a request from DEFRA (the Department for the Environment, Food and Rural Affairs.)