APRA launches local weather threat self-assessment survey

APRA is ready to start a voluntary survey amongst its regulated entities, aiming to evaluate their administration of monetary dangers related to local weather change.

The initiative builds on the muse laid by APRA’s 2022 local weather threat self-assessment survey, reflecting a continued effort to know and enhance business practices on this important space.

Goal and scope of the local weather threat survey

In a letter to all APRA-regulated entities, John Lonsdale (pictured above), APRA chair, mentioned the survey seeks to boost each APRA’s and the business’s grasp of how monetary establishments are figuring out, assessing, and managing climate-related monetary dangers.

Increasing considerably on its precursor, the 2024 survey can be accessible to a broader vary of entities, together with these in banking, insurance coverage, and superannuation.

“Along with offering insights into the administration of monetary dangers arising from local weather change, the survey will assist incorporating climate-related dangers into APRA’s supervisory assessments,” Lonsdale mentioned. “It is going to additionally enhance comparability, benchmarking and practices inside and throughout business.” 

APRA survey design and participation

Designed for effectivity, the survey consists primarily of multiple-choice questions however permits house for individuals to offer extra context. This method not solely simplifies the method but in addition encourages an intensive and nuanced understanding of every entity’s methods and challenges in managing local weather dangers.

Members can have six weeks from receipt to submit their responses, after which APRA plans to share anonymised outcomes for peer comparability. This suggestions loop is meant to boost business requirements by providing insights into collective and particular person progress in integrating local weather threat concerns into monetary threat administration frameworks.

“We look ahead to your assist for this initiative,” Lonsdale mentioned.

Get the most popular and freshest mortgage information delivered proper into your inbox. Subscribe now to our FREE day by day publication.