CASE STUDY 5.6: Climate measurement Standards Initiative
In response to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), Australia’s financial services sector is now increasingly considering the physical impacts of climate change to their operations, risk management, planning and financial disclosures. However, there are no agreed standards in place in Australia for measuring and reporting physical climate change risks.
The Earth Systems and Climate Change Hub is providing climate change expertise to the industry-led Climate Measurement Standards Initiative (CMSI), which aims to develop best-available, open-source, science-based standards for scenario analysis of physical climate-related financial risk and disclosure. The standards will allow for better reporting of physical risk, providing better risk information – and so, better decisions – for investors.
We’re supporting the Science Committee and Steering Committee/Secretariat functions of the CMSI. The Science Committee’s purpose is to inform scientific principles and guidelines for standardised scenario analysis and reporting of physical climate risks in order to meet reporting requirements of the industry regulator and expectations of government stakeholders.
We’re also leveraging off the CMSI to facilitate an increase in climate change science literacy of industry practitioners and to identify and address existing and emerging knowledge gaps, including the need for development of climate change sensitive natural catastrophe modeling capability for Australia.
Commenced: February 2019
More information: Geoff Gooley, ESCC Hub Program Manager
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