IAG submission: Consultation on draft prudential guidance CPG 229 Climate Change Financial Risks (CPG 229)

Our purpose is to make your world a safer place. We recognise that climate change is already well underway with devasting impacts to our customers and communities through catastrophic natural disaster events, which will worsen with a warmer climate¹.

We commend APRA for developing CPG 229 and the work being done by the Council of Financial Regulators (CFR) to encourage financial institutions to address the financial risks that are emerging from climate change. We agree with APRA's characterisation of climate change as a financial risk, and that urgent action should be taken to rapidly reduce greenhouse gas emissions and adapt to and mitigate immediate and future impacts of climate change.

¹ Severe Weather in a Changing Climate, C. Bruyère, G. Holland, A. Prein, J. Done, B. Buckley, P. Chan, M. Leplastrier, A. Dyer, IAG, November 2019