Climate change challenges and prudential risk - Regulators

http://gmpsiaprec.blogspot.com.au/2017/02/climate-change-challenges-and.html

‘Some climate risks are distinctly ‘financial’ in nature. Many of these risks are foreseeable, material and actionable now. Climate risks also have potential system-wide implications that APRA and other regulators here and abroad are paying much closer attention to ."

These are the words not from environmentalists , unions officials, or politicians but of the financial markets, from Executive Board Member of APRA - Australian Prudential Regulation Authority " The Australian Prudential Regulation Authority (APRA) oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, private health insurance, friendly societies and most members of the superannuation industry. "

The speech is an addition to that "Bank of England Governor, Mark Carney, who said last year that the entry into force of the Paris Climate Agreement ‘brings the horizon forward’ for action on climate change. It heightens transition risks and opportunities, makes them more immediate, and ‘puts a premium on the ability of private markets to adjust’.

The speech which includes a number of key links to support PSI Local Government and Utilities arguments that Climate Change is real, financial implications are real and just transition for workers is critical. The full speech can be located at 
http://www.apra.gov.au/Speeches/Pages/Australias-new-horizon.aspx 

The Australian Council of Superannuation Investors (ACSI) also welcomed the statement from APRA on the place of climate change risk in the investment process https://www.acsi.org.au/images/APRA_clarity_on_climate_change_risk_welcome.pdf