Regulatory AlertsCPG 229 Climate Change Financial Risks
The Australian Prudential Regulation Authority issued Prudential Practice Guide CPG 229 to provide guidance for regulated institutions on managing climate change financial risks within existing risk management and governance frameworks. The document outlines prudent practices for boards and senior management to identify, monitor, and mitigate physical, transition, and liability risks through strategic oversight, scenario analysis, and appropriate metrics. It emphasizes that while the guide does not create new enforceable requirements, it supports compliance with standards CPS 220, SPS 220, CPS 510, and SPS 510 by ensuring climate risks are integrated into overall business strategy and risk appetite.
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