HSBC gathered senior risk and accounting officers from Britain’s five largest banks – Barclays, Santander, NatWest, Lloyds and its own unit – at its Canary Wharf headquarters last week. The private session, attended by investors and the Institute of Chartered Accountants in England and Wales, focused on tightening climate‑risk disclosure in loan‑book reporting as regulators and shareholders demand greater transparency.

Regulators gave banks until next month to meet the PRA’s updated climate‑risk standards, which force physical and transition risks into expected credit loss models. PRA executive director David Bailey warned CFOs that many firms still skip “post‑model adjustments,” leaving gaps that could swell future provisions. Investors such as Sarasin, AkademikerPension and Nest have asked the Financial Reporting Council to review HSBC’s disclosures.

HSBC disclosed less than $50 mn of climate‑related expected credit loss this year, but placed the figure outside its audited statements, arguing the treatment complies with UK rules and reflects a “transparent” approach. Barclays, NatWest and Lloyds report no material climate risk under current frameworks, prompting criticism that banks’ models lag behind investor expectations. The meeting signals a push to tighten reporting before the PRA deadline.