Summary
The UK Centre for Greening Finance and Investment (UKCGFI) and the Climate Financial Risk Forum (CFRF) worked together over 2022 to gather and synthesise the lessons from the process of the Bank of England’s Climate Biennial Exploratory Scenario (CBES), both to capture the learning for UK FIs and to share this internationally.
This paper focuses on the findings of the survey and brings in some initial perspectives from the analysis of interview findings.
Information was gathered from 37 survey respondents, across 15 of the 18 CBES participants, and 12 interviews over an eight month period. The findings were validated at two workshops with CBES participants in January 2023.
Key Takeaways
- There is strong evidence of enhanced capacity and a positive impact of the CBES exercise on participating FIs, including greater awareness of climate risks and opportunities and greater integration of climate risks into risk management.
- Lower impacts at the client-facing level are reported (e.g. in terms of client dialogue and
data collection).
- The design of the exercise was seen as broadly adequate given the objectives of CBES, and appropriate to the capacity of the market and availability of data at the time the
exercise was designed.
- Despite challenges and trade–offs, many of the CBES participants stressed that the
CBES provided a good first step given the need to build organisational capability across
the sector and limitations in data.
About the Project
The UK Centre for Greening Finance and Investment (UKCGFI) and UK Climate Financial Risk Forum (CFRF) worked together to gather and synthesise the lessons from the process of the Bank of England’s Climate Biennial Exploratory Scenario (CBES) through a series of surveys and interviews with appropriate individuals involved in the process from the CBES participating firms, with validation through workshops in 2023.
