Australia’s financial regulator has warned that climate change poses a material risk to the entire financial system, and has urged companies to start adapting.
Geoff Summerhayes, from the Australian Prudential Regulation Authority, says it is unsafe for companies to ignore the risks of climate change just because there is some uncertainty, or “even some controversy”, about the policy outlook.
Speaking at the Insurance Council of Australia’s annual forum in Sydney, Summerhayes said climate change posed a physical risk and a transition risk for Australian companies.
He said the transition risks stemmed from coming changes in policy, law, markets, technology and prices that were part of “the now-agreed transition to a low-carbon economy”.
Summerhayes said Apra wanted companies to start incorporating sophisticated “scenario-based analysis” of climate risks into their business outlooks.
Read The Guardian story - “Apra says companies must factor climate risks into business outlook.”
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