APRA must consider climate-related risks
Australia’s financial regulator, the Australian Prudential Regulation Authority (APRA), has been mandated by the government to incorporate climate change-related risks into its role.
The updated Statement of Expectations for APRA includes promoting transparency and adopting climate reporting standards. This follows government plans to make climate risk reporting mandatory for large entities and develop a sustainable finance strategy.
APRA has already begun assessing climate risk factors, including conducting a Climate Vulnerability Assessment with major banks. It has stated its commitment to promoting prudence and transparency regarding climate-related risks.
Read more here.
