APRA guides banks, insurers and super funds to consider climate change risks

As business risks go, they don’t come much bigger than climate change.

This week, the banking regulator APRA issued draft guidance to the finance sector, warning of the “unprecedented” and “far-reaching” impact of climate risks to all parts of the financial system.

So pressure is now building on the big end of town to clearly identify the threats it faces from global warming, and what boardrooms intend to do about it.

APRA’s Chair Wayne Byres told PM he wants to ensure Australia’s big financial institutions are taking the risks seriously.

“From our perspective the biggest risk for financial…