Climate Risk

APRA the Prudential Regulator in Australia, released its practice guide on Climate Risks (CPG 229) in November 2021.

The objectives of the guidance are to understand the risks and opportunities that may arise from a changing climate. You should ensure investment, lending and underwriting decisions are well informed.

Climate risks’ refers to the financial risks arising from climate change, including physical, transition and liability risks.

Our approach is focussed on supporting organisations deliver to the requirements of regulatory guidance in a commercial and value-add way. This helps companies navigate the complexities of “Greenwashing” and deliver to stakeholder expectations.

The guidance reflects the established framework for considering and managing climate risks developed by the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD).

The CPG 229 guidance will prepare Australian companies for the new mandatory TCFD requirements issued by the International Sustainability Standards Board which will make disclosure of climate risks mandatory from January 2025.

Embracing Climate Change Risk: Achieving Remarkable Customer and Business Outcomes

The actions of leaders across the business are critical for successful climate risk and business outcomes. We focus on helping organisations assess, define and embed climate risk strategies through engagement of the Board and senior management.

Implementing proportionate governance, risk management, scenario analysis and disclosure practices will be important. Our approach considers these 4 key elements to develop climate risk identification and disclosure in an organisation:

How we can help strengthen your sustainability risk strategy

Governance Review: Assess governance over climate related risks / opportunities and Board readiness.

Strategic Review:
Potential impacts, risks and opportunities on your business.

Risk Integration Review: Policies, risk profile/risk & control self-assessment, risk appetite & taxonomy.

ESG Framework uplift: Design and implementation support for ESG frameworks.

Regulatory disclosure (TCFD): Review impact of new ISSB (IFRS S1/S2 standards) to your business. Support in design and implementation of regulatory disclosure requirements.

Climate Risk Support

Enhance your board's readiness with our comprehensive services, tailored to support your success.

We offer expert education on ESG, climate risk health checks, furnish a Board Room Toolkit & Online Questionnaire, and provide invaluable assistance in board and management oversight and governance.

Get in touch with us today to empower your business for the challenges of tomorrow.