This after a consultation in March last year
The Reserve Bank has released comprehensive guidance for regulated entities on managing climate-related risks, marking a significant step outlined in the National Adaptation Plan.
Following sector consultation in March 2023, the guidance has been refined with additional examples, streamlined content, and alignment with the Aotearoa New Zealand Climate Standards to facilitate comprehension and application.
Kate Le Quesne (pictured above), director of prudential policy at RBNZ, stressed the critical role of financial institutions in adapting to climate change risks, highlighting potential impacts on insurers and banks due to increasing severe weather events and shifts in business viability.
See LinkedIn post here.
Tailored climate-risk guidance
The newly published guidance aims to assist entities in identifying, managing, and monitoring climate risks, offering flexibility for implementation across different business models.
“The guidance sets out our expectations of how regulated entities should be identifying, managing, and monitoring climate-related risks,” Le Quesne said in a media release. “The guidance is not prescriptive, as entities are best placed to decide how to apply it to their business models and strategies.”
RBNZ said it was committed to continuous engagement with entities on the application of the guidance and plans for periodic updates to reflect evolving practices and legislative changes.
“We are grateful for the feedback we received and look forward to hearing how entities use the guidance,” Le Quesne said.
For further details, read "Managing climate-related risks: guidance for prudentially regulated entities", "Managing climate-related risks consultation", and the National Adaptation Plan.
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