News dalla rete ITA

16 Settembre 2020

Australia

AUSTRALIAN BANKS PUBLISH DISCLOSURE RULES FOR EXTREME CLIMATE RISK

Major Australian banks and insurers on Monday published the nation's first comprehensive climate change reporting framework, pre-empting threats from the prudential regulator to make such disclosure mandatory. The guidelines were published by the Climate Measurement Standards Initiative, a collaboration between major banks, insurers and climate scientists. They flesh out the Task Force for Climate-Related Financial Disclosure (TCFD) guidelines in a way that is specific to Australia's geography. The initiative was started by National Australia Bank, the Commonwealth Bank of Australia, Westpac, Suncorp, QBE, IAG, the CSIRO, the Bureau of Meteorology and research universities, but any financial institution can use the guidelines. NAB's chief risk officer, Shaun Dooley, said the new guidelines would develop a "consistent finance sector approach to disclosure in line with the TCFD and make it easier to understand and compare disclosures". Under the guidelines, financial institutions would take two dates, 2030 and 2050, and two potential warming scenarios, one extreme, one moderate. They would then use the best science to assess their exposure to various physical risks under those scenarios and in those years. QBE's head of ESG risk, Sharanjit Paddam, said the point was to bring uniformity and objectivity to an area that is riddled with uncertainty. He said the goal was to increase confidence in reporting, using "rigorous scientific advice" to build a consensus view of the risks. He emphasised the localised nature of the guidelines. The Australian Prudential Regulation Authority has done extensive work on climate risk, and has told institutions they must regard it as fundamental to risk management. But it has not yet introduced formal climate risk reporting rules. The scenarios used in the guidelines are based on work by the Intergovernmental Panel on Climate Change. The first, known as RCP 2.6, is the best of the IPCC's four scenarios, and assumes an emissions pathway that will keep temperatures below 2 degrees. The second, RCP 8.5, is the worst of the four scenarios, and would likely see temperatures increase more than 4 degrees on pre-industrial levels by 2100. CSIRO climate scientist Professor David Karoly, who heads the Earth Systems and Climate Change Hub and was closely involved in developing the CMSI framework, said on current trajectories the RCP 8.5 scenario was the more likely one. He cautioned against thinking of climate change as a future risk. “The sorts of systems we were exposed to in the summer of 2019 and 2020 demonstrate that climate change is already leading to unprecedented extreme weather events. Climate change is not just something that will happen in the future. It's happening already," he said. Average global temperatures are currently just over 1 degree above pre-industrial levels, according to NASA.AFR 14.09.2020 (ICE SYDNEY)


Fonte notizia: Australian Financial Review