APRA Releases Results of Climate Risk Survey on Regulated Entities

APRA surveyed 38 large banks, insurers, and superannuation trustees, last year, to assess their views and practices on climate-related financial risks. The survey found that a substantial majority of the regulated entities were taking steps to increase their understanding of the climate change risk. Other key findings include the following:

• A third of the respondents believed that climate change is a material financial risk to their businesses and a further half thought it would be in future.
• Majority of the banks considered climate-related financial risks as part of their risk management frameworks.
• Reputational damage, flooding, regulatory changes, and cyclones were nominated as the top climate-related financial risks.

Respondents also described the strategic opportunities they had identified from the transition to a low-carbon economy, including developing innovative products and services, and meeting the growing demand for green investment opportunities.

Related Links

• Press Release
• Information Paper (PDF)

Keywords: Asia Pacific, Australia, Banking, Insurance, Pension Funds, Climate Risk Survey, Risk Management, Climate-Related Financial Risk, APRA