Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps she is taking to (a) monitor and (b) assess the risk posed by climate emissions to UK (i) financial stability and (ii) pension funds.

The Bank of England’s Financial Policy Committee (FPC) is responsible for identifying and addressing risks to the UK financial system. The FPC’s latest remit was set out by the Chancellor in November 2024. It sets out that the Committee should regard the risks posed by climate change, including physical and transition risks, as relevant to its primary objective, and consider how these risks could impact financial stability over the near and long term, including where appropriate through its stress testing frameworks. The remits for the Financial Policy Committee and Prudential Regulation Committee also make clear that they should support the Government’s approach to accelerate the transition to a climate resilient, nature positive, and net zero economy.