Major UK lenders met to align on reporting standards as regulators tighten climate-risk disclosure requirements by next month.
HSBC convened private talks with Barclays, Santander, NatWest, and Lloyds to address stricter climate-risk disclosure expectations. The discussions, held last week, focused on compliance with updated Prudential Regulation Authority (PRA) standards requiring banks to assess climate-related risks in loan portfolios by next month.
The meeting included investors and the Institute of Chartered Accountants in England and Wales, which confirmed its attendance. Central banks have warned that climate events like flooding and wildfires could increase defaults, compounding pressures from high inflation and interest rates.
The talks precede HSBC’s recent decision to ease fossil-fuel financing restrictions, a move criticized at its annual general meeting. Banks face growing scrutiny from regulators and investors over climate-risk transparency.