Climate change is in the regulator’s sights once more

The PRA’s latest supervisory statement seeks to strengthen governance by reinforcing the role of boards and senior management in setting and overseeing firms’ approaches to managing climate-related risks

In December 2025 the UK’s Prudential Regulatory Authority (PRA) issued a policy statement alongside the final version of supervisory statement SS25/5, Enhancing banks’ and insurers’ approaches to managing climate-related risks.