SS 4/25: Approaches to managing climate related risks

9 Dec

The Prudential Regulation Authority (PRA) has published its final Policy Statement PS25/25 on climate-related financial risks on 3 December 2025.

This follows the earlier consultation launched in April 2025 (CP10/25 on climate-related financial risks). The final expectations now sit in Supervisory Statement SS4/25 ‘Enhancing banks’ and insurers’ approaches to managing climate-related risks’, which immediately replaces the old SS3/19.

We have broken down the Supervisory Statement into a set of 41 expectations that non-systemic banks will need to proportionately consider. This can be downloaded below.

We hope you find our breakdown helpful, and wish you every success in your road to compliance.

Reach out to hear more about how we are working with trade associations, regulators, and the CFRF towards designing a proportionate climate risk management framework for non-systemic firms.