Banking giant Westpac says the federal government must play a role in developing a price on carbon if the financial risks of climate change are to be understood and mitigated.
Michael Chen, the bank's head of sustainability and prominent player in the Australian Sustainable Finance Initiative (ASFI), said without mitigation the effects of climate change would threaten the financial system's stability.
"Central banks and regulators around the world are saying climate risk is financial risk, but the financial system hasn’t adequately priced in environmental and social risk, and this is a risk for the financial system’s stability," Mr Chen told The Australian Financial Review.
Read the story from the Financial Review by James Fernyhough - “Carbon pricing vital for financial stability: Westpac.”
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