Guest Blog - What does APRA's Draft Climate Risk Guidelines mean for Australian Companies?
With the release of the Australian Prudential Regulation Authority (APRA) draft guidelines in April 2021, APRA has sent a clear message that ignoring climate change could results in serious legal and financial repercussions. From supply chain disruption to portfolio depreciation, preparing for climate change risks will ensure your business is prepared for a climate resilient future.
Featured below is a summary of Climate Valuation’s five takeaways from the new APRA draft climate risk guidelines posted 1 June 2021.
Five Takeaways For Australian Companies
Listed below are Climate Valuation’s five takeaways that every Australian company should know about the new APRA draft climate risk guidelines:
1. The biggest climate risk is not preparing for climate change.
2. Failing to manage climate change risk may carry financial and legal repercussions.
3. One-off climate risk reporting is no longer adequate.
5. It’s time to move beyond climate reporting and disclosure to mitigation and managing risk.
5. Bring in the climate risk expertise you need.
With the release of these draft guidelines, APRA has sent a clear message that ignoring climate change could results in serious legal and financial repercussions. From supply chain disruption to portfolio depreciation, preparing for climate change risks and will ensure your business is prepared for a climate resilient future.
Climate Valuation and XDI are sister organisations providing climate risk management solutions. As global leaders in Physical Climate Risk Analysis and Adaptation, they work with key decision makers in the areas of finance, business and infrastructure, government and residential.
About Climate Valuation
Climate Valuation was established in 2016 to help homeowners and homebuyers quantify and manage the physical and financial risks of climate change to their residential property assets. Our analysis harnesses the world’s most powerful Climate Risk Engine software, leveraging the most advanced extreme weather and climate change science used by governments, utilities and financial corporations.
For more information about Residential asset portfolio analysis and benchmarking contact Climate Valuation.
For more information about Commercial – owned asset analyis and benchmarking or Counterparty – investment analysis of portfolio of companies contact XDI.
XDI Cross Dependency Initiative provides physical climate risk analysis and reporting for financial service providers, business and government. We have worked with a wide range of financial sector and government clients including the British Columbian government, Legal and General Investment Management and Government of New South Wales. We work with a number of management consultancies in the UK and North America to provide the physical risk component of TCFD reporting. XDI’s analysis uses multi-award winning technology and is proven in the market. XDI creates detailed asset-by-asset failure risk, supply chain and transport risk and cost benefit analysis. We’re looking forward to helping businesses gain a better understanding of climate risk and prepare for what’s ahead in the post-pandemic economy.