Climate change could threaten entire financial system, APRA warns

Climate change could threaten the stability of the entire financial system, the prudential regulator has warned, as it prepares to apply climate change “stress tests” to the nation’s financial institutions.

In its first major speech on climate change, the Australian Prudential Regulation Authority chastised companies for a lack of action on the risks it poses.

“While climate risks have been broadly recognised, they have often been seen as a future problem or a non-financial problem,” APRA executive board member Geoff Summerhayes told an Insurance Council conference in Sydney.

“Many of these risks are foreseeable, material and actionable now. Read more…