SYDNEY (Reuters) – Australia’s banking regulator on Friday launched its last guidance for banks, insurers and pension funds to handle monetary dangers related to climate change, stopping wanting imposing new necessities.
The Australian Prudential (NYSE:) Regulation Authority (APRA) mentioned the principle-based information is aligned with the Financial Stability Board’s Disclosures Task Force on Climate-related Financial (TCFD) suggestions however doesn’t impose new regulatory necessities.
“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 Byres mentioned.
The guidance paper “is a direct response to their request for more clarity about regulatory expectations and examples of better industry practice.”
The regulator will conduct a survey on climate change monetary danger to know the extent of alignment between establishments’ administration of climate change monetary dangers, the brand new guidance and the TCFD suggestions.
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