'Further work required': Bank of England raises alarm over financial industry's inconsistent approach to climate risk

The Bank of England’s Prudential Regulation Authority (PRA) has bemoaned a lack of consistency across the financial industry when it comes to responding to the impacts of climate change, warning that it presents a “material and increasing financial risk to firms and to the financial system”.

In a letter sent to chief executives of global banks operating in the UK, the authority said addressing firms’ “safety and soundness from climate change” requires immediate action. “Some firms have made good progress in embedding the PRA’s supervisory expectations, but progress has not been consistent across all firms, with further work required by many to meet those expectations,” the letter states.

The letter was written by executive director for Authorisations, Regulatory Technology, and International Supervision, Nathanaël Benjamin, and fellow director Rebecca Jackson.

Many leading banks and financial institutions have adopted net zero targets in recent years and ramped up investments in low carbon

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