What could APRA’s climate guidance mean for ASX bank shares?

The Australian Prudential and Regulatory Authority (APRA) has released draft guidance for financial institutions, including ASX bank shares like Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking Group Ltd (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB), about climate change.

APRA says the guidance “is designed to assist APRA-regulated entities in managing climate-related risks and opportunities”.

Last month, Motley Fool Australia conducted an interview with the Climate Council of Australia, in which one of its economists said climate change could lead to “a COVID-sized…