The Reserve Bank of Australia outlines its climate risk strategy.

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The Reserve Bank has laid out its plans for mitigating and managing the economic risks associated with climate change.

According to the report, the financial stability risks associated with climate change are significant, necessitating an immediate response.

The Reserve Bank strategy is divided into three parts: managing its own emissions, collaborating with regulated entities on climate risk management, and leading the Council of Financial Regulators’ climate work.

The Central Bank stated that it had made progress in understanding its own carbon footprint, and that the scope had been expanded to include emissions from purchased goods and services.

“Ongoing climate change has brought with it material economic and financial risks that we are obliged to identify, manage, and mitigate as part of our daily activities,” Governor Adrian Orr said.

“The financial stability risks associated with climate change are significant, necessitating an urgent and collaborative response.

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“Our efforts at Te Pūtea Matua include ensuring our own house is in order, as well as working directly with our regulated institutions and domestic and global networks to best manage the climate transition.”

The RBNZ said it was also an active member along with 95 other central banks and supervisors of the Network of Central Banks and Supervisors for Greening the Financial System.

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