The Prudential Regulation Authority (PRA) in the UK finalized its policy statement (PS25/25), updating rules for banks and insurers on managing climate-related risks. The policy does not create a new Senior Management Function (SMF) specifically for climate risk but clarifies that existing SMF holders or other senior individuals must be clearly identified and made accountable for managing the financial and operational risks posed by climate change. This aims to embed climate risk into core governance structures.
