Climate change is first-order financial risk - RBA's Debelle

Thursday, 14. October 2021 00:12

Unlike "any other risk that we would expect financial institutions to manage," climate change poses a "first-order" hindrance for the financial system, Reserve Bank of Australia (RBA) Deputy Governor Guy Debelle (pictured) noted.

Delivering a speech at a CFA Australia Investment Conference, he underlined that the assessment of climate change risks has been "considerably" improved, but warned that more needs to be done to enable financial institutions to better understand the potential impact of the phenomenon.

"One of the main challenges that we are focussing on in the CFR Working Group is the quality, consistency, comparability and often the sheer availability of data to appropriately assess climate risks," Debelle asserted.

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