Sustainable Risk Management


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Sustainable Risk Management

AFME’s Sustainable Risk Management focuses on EU and UK industry developments regarding climate-related and environmental risks, including climate risk stress testing and scenario analysis, and ESG risks in the prudential framework.

Overview

AFME closely follows recent regulatory developments in climate and environmental risk management practices. Climate and environment risks are considered drivers of existing risk types. We support member firms’ to identify and embed these in their risk management practices as per expectations set by EU and UK supervisors and regulators, and in line with global, regional and national goals to achieve carbon neutrality.
Climate Risk Stress Testing
Through its Climate Risk Stress Testing (CRST) workstream, AFME engages with member firms to help improve their experience of climate risk stress testing both internally and externally. We coordinate and engage with supervisors, regulators and other relevant stakeholders to address the way in which such exercises are undertaken.
Working Group: Climate Risk Stress Testing (CRST) workstream.
A Common Path to Improve European Climate Risk Stress Testing and Scenarios Analysis
AFME’s Lessons learnt report on EU CRST

AFME’s comment on ECB CRST
Bank of England consultation on stress testing the financial stability implications of climate change

Contacts

Caroline Liesegang

Managing Director, Head of Prudential Regulation, Sustainable Finance and Research

Constance Usherwood

Managing Director, Prudential