The Australian Prudential Regulation Authority (APRA) has published a letter to all APRA-regulated institutions outlining plans to develop a prudential practice guide focused on climate-related financial risks, as well as a climate change vulnerability assessment.
The letter also outlines APRA’s intention to update superannuation Prudential Practice Guide SPG 530 Investment Governance, which includes paragraphs related to environmental, social and governance (ESG) investments.
The letter is available on the APRA website at: Understanding and managing the financial risks of climate change.