New Australian guidelines launched to ensure consistent climate change risks assessments and disclosure
Sydney – An Australian-first collaboration between climate scientists, insurers and the finance sector has produced new guidance for assessing the physical risks – such as tropical cyclones, bushfires and floods – of climate change to homes, buildings and critical infrastructure.
The Climate Measurement Standards Initiative (CMSI) has developed a set of open-source voluntary guidelines that will, for the first time, provide Australian banks, financial institutions and insurers with consistent scientific and technical guidance on how to assess the risk of climate-related damage to their buildings and critical infrastructure from extreme weather events.
“The CMSI provides guidelines specific to Australian conditions. Consumers will have confidence in the resulting disclosures because they’ll be understandable, consistent, comparable and supported by Australia’s leading climate experts.”
The CMSI has been designed specifically to support the G20 Financial Stability Board’s Task Force on Climate-Related Financial Disclosures (TCFD) that made recommendations on disclosing the risks and opportunities associated with climate change and enable stakeholders to better understand the financial system’s exposures to climate-related risks.