Last week, the Bank of England announced that it will be launching its climate stress test in June 2021. This week, it provided more detail on the Climate Biennial Exploratory Scenario, including a timeline and list of participants.
The scenarios will be published in June 2021. Participant firms will then have 3-4 months to make initial submissions, with results out in Q1 or Q2 2022. The Bank of England has said it will release a set of draft data templates, as well as a draft qualitative questionnaire for feedback from participants in February 2021, with the finalised data templates and qualitative questionnaire in April 2021.
Participants include seven large UK banks and building societies, five large life insurers and six large general insurers.
This program of planned engagement represents an attempt to reduce the burden on participating firms by improving their readiness for the exercise.