The Australian Prudential Regulation Authority (APRA) says that it will shortly commence a voluntary survey of its regulated entities, including insurers and superannuation funds, asking them to self-assess the maturity of their current practices against its guidance on managing the financial risks of climate change.
This survey is a follow-on to APRA’s 2022 climate risk self-assessment survey.
In a letter to all APRA-regulated entities about the purpose and timing of the survey, the regulator says that the survey is intended to improve both APRA’s and the industry’s understanding of the approaches being taken by the regulated entities to identify, assess and manage climate-related financial risks. In particular, the survey will gather insights on how APRA-regulated entities are currently managing these risks, using APRA’s Prudential Practice Guide CPG 229 Climate Change Financial Risks, published on 26 November 2021, as its benchmark.
In addition to providing insights into the management of financial risks arising from climate change, the survey will support incorporating climate-related risks into APRA’s supervisory assessments. It will also improve…
