Submissions are open until June 7
The Reserve Bank of New Zealand is inviting the public to provide feedback on the proposed new guidance for the financial sector on managing climate-related risks.
Christian Hawkesby (pictured above), RBNZ deputy governor, said the recent upper North Island floods and Cyclone Gabrielle have highlighted how New Zealanders are already being impacted by climate change. And with climate-related risks continuing to evolve, the financial system, too, could potentially be significantly impacted in the future.
“The financial stability risks associated with climate change are significant, necessitating an urgent and collaborative response,” Hawkesby said. “The Reserve Bank of New Zealand is obliged to identify, manage, and mitigate these risks as part of our daily activities.”
Adapted from international best practice to suit the New Zealand context, the draft guidance sets out how banks, insurance companies, non-bank deposit takers, and market infrastructure operators should manage climate-related risks within their broader risk management framework.
“We recognise that climate-related risks will not affect all entities equally and the guidance stresses that appropriate measures are proportionate,” Hawkesby said.
All regulated entities were proposed to develop their capabilities in climate-related scenario analysis and stress testing, to enable them to develop actions and targets that will ensure their business model and strategy is resilient.
Here’s where to access RBNZ’s Managing climate-related risks consultation paper and how to submit your feedback. Submissions are welcome until June 7.
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