About the conference
Date: Wednesday 19 October and Thursday 20 October 2022
The Bank of England and Prudential Regulation Authority (PRA) hosted a conference to explore climate change and capital. The objective of the conference was to facilitate discussion on the complex issues associated with adjusting the capital framework to take account of climate-related financial risks.
The conference met the commitment the PRA set out in its Climate Change Adaptation Report 2021 and will support its aim of providing more guidance on its approach to climate and capital in due course.
The Bank of England continues to actively participate in the international discussions on climate and capital that are currently ongoing at the Basel Committee on Banking Supervision (BCBS) Task Force on Climate-related Financial Risks (TFCR) and at the International Association of Insurance Supervisors (IAIS). The Bank is an advocate for an internationally coordinated response to these issues.
The Climate and Capital conference brought together academics, practitioners and policymakers to discuss views on the questions that the Bank set out in Call for papers in early 2022:
• The appropriate time horizon over which the risks should be reflected in capital requirements
• How to deal with uncertainty over that time period, including the use of scenarios to more accurately measure and calibrate capital requirements; and
• Where these risks are best reflected in the capital regime, ie the appropriateness of microprudential firm-specific vs macroprudential system-wide capital requirements for climate risks
The conference featured a number of research presentations on these issues and discussed the challenges with using the prudential capital tools to ensure firms are resilient to climate-related financial risks.
A full agenda of the conference, list of speakers, links to featured research, including the research summary note published to support the conference, and the videos of the conference can be found below.