UK FCA webpage on climate adaptation and resilience

The UK Financial Conduct Authority (FCA) has published a new webpage on climate adaptation and resilience, highlighting the growing impact of physical climate risks on regulated firms. The FCA notes that these risks require financial services firms to consider both climate adaptation, namely taking action to prepare for the effects of climate change, and resilience, meaning the ability to anticipate, respond to and recover from those effects. The FCA has a direct interest in how firms and markets adapt to these risks as they can impact: (i) consumer protection, where consumers' ability to access and afford products on fair terms and at fair value may be impacted; (ii) market integrity, where markets may struggle to price risk accurately; and (iii) competition, where access to financial services may become uneven. The FCA encourages firms to consider how acute and chronic climate risks may affect their operations, risk management and service delivery. It also sets out ways in which firms can engage with the FCA and access support.

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