PRA plans climate-related supervision from 2022 — highlighting gaps in risk and scenario planning

By Neasa MacErlean

The PRA is to start using its “supervisory and regulatory toolkit” with banks and insurers that have not implemented its “ climate-related supervisory expectations” by the end of this year. Firms need to show “more progress”, according to the regulator’s ‘ Climate Change Adaptation Report 2021’ — “especially with respect to firms’ risk management and scenario analysis capabilities”.