Overview

Climate Financial Risk Forum (CFRF) is a UK industry initiative established in 2019 by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) to improve the financial services sector’s approach to climate-related risks and opportunities. Its core aim is to enhance strategic risk management across banks, insurers and asset managers. CFRF provides a collaborative platform for industry to shape best practice on climate risk integration.

Mission and focus areas

CFRF’s main goal is to build industry capacity to understand and manage climate-related financial risks. It focuses on reducing barriers to effective climate risk management through practical guidance and tools that support strategic decision-making. The forum addresses sustainable finance priorities including climate scenario analysis, physical and transition risk, disclosures, innovation and nature-related risks, helping firms integrate these factors into risk management and strategic planning.

Structure and governance

CFRF is jointly convened by FCA and PRA and operates through a Steering Group composed of senior representatives from major financial institutions such as banks, asset managers and insurers. The forum also includes observers from industry trade bodies to broaden representation. Specialist working groups are established to develop outputs on specific thematic areas of climate risk. While regulators facilitate discussions, the published views do not constitute regulatory guidance.
Bank of England

Programs and offerings

CFRF produces a broad suite of resources aimed at financial professionals, including industry-written guides on climate risk management, scenario analysis implementation guides, case studies, handbooks on nature and physical risk, and interactive tools such as an online climate scenario narrative generator. These materials are designed to support firms’ internal practices and align with evolving expectations in climate and sustainable finance risk integration.

Its mission is clear: to enhance the financial services industry’s ability to manage climate-related risks and opportunities through strategic risk management.