BANKS AND INSURERS: INPUT SOUGHT ON CLIMATE-RELATED GUIDANCE NOTES

BANKS AND INSURERS: INPUT SOUGHT ON CLIMATE-RELATED GUIDANCE NOTES

• 03 August 2023
• Financial Sector
• SA Legal Academy

The Prudential Authority has called for public comments by 13 September 2023 on four draft guidance notes. Once in force, they will affect insurance and banking industry climate-related disclosure and risk management practices.

According to the communication accompanying all four documents, the Authority’s intention is to provide ‘an appropriate level of ambition for climate-related risk management and disclosures’ relative to an institution’s prevailing ‘approach to climate-related risks and opportunities’.

To that end, input is sought on:

• ‘current or anticipated key challenges in climate-related risk practices and disclosures’
• whether there are any major areas not covered, and
• whether there are any issues the guidance notes should not cover.

The call for stakeholder input appears to have been motivated by ‘the nascent nature of climate risk management, and the requirement for specialist skills, capacity and data’.

Comment templates are provided below, with the draft guidance notes.

• Prudential Authority communication
• proposed disclosure guidance for banks
• proposed disclosure guidance for insurers
• comment template
• proposed risk management guidance for banks
• proposed risk management guidance for insurers
• comment template

Published by SA Legal Academy Policy Watch

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