{"id":12889,"date":"2023-06-09T14:59:21","date_gmt":"2023-06-09T14:59:21","guid":{"rendered":"https:\/\/www.esgtoday.com\/?p=12889"},"modified":"2023-06-09T14:59:21","modified_gmt":"2023-06-09T14:59:21","slug":"australia-mandates-bank-regulator-to-consider-climate-risk-adopt-climate-reporting-standards","status":"publish","type":"post","link":"https:\/\/www.esgtoday.com\/australia-mandates-bank-regulator-to-consider-climate-risk-adopt-climate-reporting-standards\/","title":{"rendered":"Australia Mandates Bank Regulator to Consider Climate Risk, Adopt Climate Reporting Standards"},"content":{"rendered":"<!--themify_builder_content-->\n<div id=\"themify_builder_content-12889\" data-postid=\"12889\" class=\"themify_builder_content themify_builder_content-12889 themify_builder tf_clear\">\n    <\/div>\n<!--\/themify_builder_content-->\n\n\n<p>The government of Australia announced that it is for the first time mandating Australia\u2019s financial regulator, the Australian Prudential Regulation Authority (APRA), to incorporate climate change-related risks as part of its role.<\/p>\n\n\n\n<p>The new requirement, released as part of an updated Statement of Expectations for ARPA, includes \u201cpromoting transparency in relation to financial risks and the adoption of climate reporting standards,\u201d according to a statement by Australian Treasurer Jim Chalmers.<\/p>\n\n\n\n<p>The new Statement of According to the new statement, the government will now expect APRA to \u201cpromote prudent practices and transparency in relation to climate\u2011related financial risks and the adoption of climate reporting standards by regulated entities.\u201d<\/p>\n\n\n\n<p>Chalmers said:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\">\n<p>\u201cFor the first time, the Government is explicit in requiring the regulator to consider risks related to climate change as part of its work.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p>The new statement follows the government\u2019s <a href=\"https:\/\/www.esgtoday.com\/australia-plans-mandatory-climate-reporting-for-companies\/\">launch in December 2022<\/a> of a consultation paper on the development of a climate risk disclosure framework for businesses and financial institutions, with plans to make the reporting rules mandatory for large entities, and stating that it recognizes physical and transition climate related risk \u201cas a material risk to the global financial risk,\u201d with disclosure forming a key tool in managing that risk. The government also tasked the Treasury department to develop a comprehensive sustainable finance strategy, with climate risk disclosure forming a part of the strategy.<\/p>\n\n\n\n<p>APRA has already started initiatives to assess climate risk factors in the financial system, including <a href=\"https:\/\/www.esgtoday.com\/australia-regulator-study-finds-banks-expect-to-reduce-exposure-to-climate-risk-affected-industries-regions\/\">recently conducting<\/a> its first Climate Vulnerability Assessment (CVA) with the country\u2019s five largest banks, which modelled the estimated future financial impact of climate change on their businesses, and their potential responses to physical and transition climate risks.<\/p>\n\n\n\n<p>In response to the government\u2019s new expectations, APRA released a statement of intent, including a statement that the regulator \u201cwill continue to promote prudent practices and transparency in relation to climate-related risks in the Australian financial system, consistent with the Government\u2019s sustainable finance reforms.\u201d<\/p><span class=\"et_bloom_bottom_trigger\"><\/span>","protected":false},"excerpt":{"rendered":"<p>The government of Australia announced that it is for the first time mandating Australia\u2019s financial regulator, the Australian Prudential Regulation Authority (APRA), to incorporate climate change-related risks as part of its role. The new requirement, released as part of an updated Statement of Expectations for ARPA, includes \u201cpromoting transparency in relation to financial risks and [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":12890,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[37,17,30],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.8.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Australia Mandates Bank Regulator to Consider Climate Risk, Adopt Climate Reporting Standards - ESG Today<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.esgtoday.com\/australia-mandates-bank-regulator-to-consider-climate-risk-adopt-climate-reporting-standards\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Australia Mandates Bank Regulator to Consider Climate Risk, Adopt Climate Reporting Standards - ESG Today\" \/>\n<meta property=\"og:description\" content=\"The government of Australia announced that it is for the first time mandating Australia\u2019s financial regulator, the Australian Prudential Regulation Authority (APRA), to incorporate climate change-related risks as part of its role. The new requirement, released as part of an updated Statement of Expectations for ARPA, includes \u201cpromoting transparency in relation to financial risks and [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.esgtoday.com\/australia-mandates-bank-regulator-to-consider-climate-risk-adopt-climate-reporting-standards\/\" \/>\n<meta property=\"og:site_name\" content=\"ESG Today\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/ESGToday\/\" \/>\n<meta property=\"article:published_time\" content=\"2023-06-09T14:59:21+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.esgtoday.com\/wp-content\/uploads\/2023\/06\/Australia-Sydney.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1035\" \/>\n\t<meta property=\"og:image:height\" content=\"634\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Mark Segal\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@EsgToday\" \/>\n<meta name=\"twitter:site\" content=\"@EsgToday\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mark Segal\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.esgtoday.com\/australia-mandates-bank-regulator-to-consider-climate-risk-adopt-climate-reporting-standards\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.esgtoday.com\/australia-mandates-bank-regulator-to-consider-climate-risk-adopt-climate-reporting-standards\/\"},\"author\":{\"name\":\"Mark Segal\",\"@id\":\"https:\/\/www.esgtoday.com\/#\/schema\/person\/cca7a2b05e3a06d096e5740fb1433a01\"},\"headline\":\"Australia Mandates Bank Regulator to Consider Climate Risk, Adopt Climate Reporting Standards\",\"datePublished\":\"2023-06-09T14:59:21+00:00\",\"dateModified\":\"2023-06-09T14:59:21+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.esgtoday.com\/australia-mandates-bank-regulator-to-consider-climate-risk-adopt-climate-reporting-standards\/\"},\"wordCount\":339,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.esgtoday.com\/#organization\"},\"articleSection\":[\"ESG Reporting\",\"Regulators\",\"Sustainable Finance\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.esgtoday.com\/australia-mandates-bank-regulator-to-consider-climate-risk-adopt-climate-reporting-standards\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.esgtoday.com\/australia-mandates-bank-regulator-to-consider-climate-risk-adopt-climate-reporting-standards\/\",\"url\":\"https:\/\/www.esgtoday.com\/australia-mandates-bank-regulator-to-consider-climate-risk-adopt-climate-reporting-standards\/\",\"name\":\"Australia Mandates Bank Regulator to Consider Climate Risk, Adopt Climate Reporting Standards - 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