Australia's banking regulator finalises climate change policy guidance

The guidance calls for financial companies to immediately start managing climate change risks within their existing risk management frameworks

Australia's banking regulator released on Friday its final guidance for banks, insurers and pension funds to manage financial risks associated with climate change, stopping short of imposing new rules.
 

The Australian Prudential Regulation Authority (APRA) said the principle-based guide is aligned with recommendations from the Financial Stability Board's Disclosures Task Force on Climate-related Financial (TCFD) set up by the G20 rich countries to coordinate rules.
 

"Most APRA-regulated entities recognise the potential challenges of climate change, such as ... new laws or adjustments in asset values, but they don't always have a good understanding of how to respond," APRA Chair Wayne