- Australia's bank regulator released its final guidance on Friday to a bank, insurer and pension fund to manage climate change risks without breaking up new requirements.
The Australian Prudential Regulation Authority said that the principle-based guide is aligned with the Financial Stability Commissions Disclosures Task Force on Climate-related financial (TCFD) recommendations but does not impose new regulations.
In many APRA-regulated entities recognize the potential challenges of climate change, such as... new laws or the amendments of asset values, but they don't always understand how to respond properly," said Wayne Byres.
The guidance paper "satisfies their request for more clarity about regulatory expectations and better industry practices" and a direct response to the demand for clarification.
The regulator has been conducting a research survey on climate change, to assess how its risks vary from institutional management to the reliant recommendations on climate change.
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