How banks are supporting the climate transition
30 November 2022
The Australian Banking Association (ABA) today welcomes the release of the Australian Prudential Regulation Authority’s (APRA) Climate Vulnerability Assessment Results Information Paper (CVA) and notes the key finding that banks are well positioned to manage climate financial risk.
The ABA looks forward to considering the report in detail.
The CVA was developed by APRA in collaboration with Australia’s five largest banks and facilitated by the Australian Banking Association (ABA), in 2021/2022 to assess the nature and extent of climate risks to financial institutions and the financial system.
While this remains a developing area of analysis the CVA provided a collaborative process to explore the impact of potential future climate pathways. It is an emergent and important method for understanding climate change financial risk.
APRA first published the Climate Vulnerability Assessment Information Paper in September 2021, which provided information on the key design features of the CVA. It also provided a comparison of similar work undertaken by international regulatory peers.
The CVA released today will inform future industry efforts in using scenario analysis as a tool for understanding climate change related financial risks.
The ABA considers clear, transparent, comprehensive, and comparable disclosure of sustainability-related information to be part of the foundation of a well-functioning global financial system. We note the IFRS draft standards requirement for the publication of climate-related scenario analysis under the ‘[Draft] IFRS S2 Climate-related Disclosures’.
The ABA looks forward to working with the Australian Government to identify key data sets and methodologies that will enable the production of these disclosures.
Latest news
Transcript
ABA CEO Simon Birmingham interview on ABC Sydney Drive with Thomas Oriti
Read more
21 September 2026
E&OERadio InterviewInterview on ABC Sydney Drive21 September 2026 Topics: Refinancing and competition in the home loan market; Hardship support Thomas Oriti: Now, have you had to refinance your mortgage, perhaps because of rising interest rates, or maybe something else? Maybe your work situation changed, and you weren’t bringing in as much money. What was that… Read more »
Media Releases
Banks step up protections for customers experiencing financial abuse
Read more
17 September 2026
Banks will better detect, prevent and respond to financial abuse under an updated industry guideline released today by the Australian Banking Association. The ABA has brought together separate resources on financial abuse, including elder abuse and family and domestic violence into a single framework, building on existing industry guidance and supporting the financial abuse provisions… Read more »
Media Releases
Preparing for the removal of card surcharging
Read more
14 September 2026
The ABA and its member banks are reminding businesses to make sure they are ready for the upcoming Reserve Bank of Australia’s (RBA) card surcharge reforms which take effect from 1 October 2026. These changes mean: ABA CEO Simon Birmingham said banks were supporting business customers to prepare for these changes, along with implementing the… Read more »