Moody’s Investors Service has described as “credit positive” the move by financial institutions including insurers to launch new voluntary guidelines for measuring the financial impacts of climate risks.

The guidelines are the result of a collaboration among Australian and global insurers, domestic banks and scientists under the Climate Measurement Standards Initiative (CMSI).

“The guidelines, while voluntary, are credit positive for Australian financial institutions, as they will provide a framework for understanding and reporting on climate-related financial risks,” Moody’s says.

“They will also improve the transparency and comparability of climate-related risk disclosures.”

The CMSI has been designed to support the G20 Financial Stability Board’s Taskforce on Climate-related Financial Disclosures, which made recommendations on how to disclose risks associated with global warming to stakeholders.

The launch of the guidelines last week came ahead of an expected publication from the Australian Prudential Regulation Authority (APRA) on climate change risk guidance it expects financial firms to provide. APRA has previously said it wants to release the guidelines by the end of the year.

QBE, IAG, Suncorp, RACQ Insurance, Swiss Re and Munich Re provided input to the guidelines, which consider future climate change risks that are “chronic” and “acute” for the Australian general insurance, banking and asset-owner sectors for the years 2030, 2050 and 2090.

Chronic risks are gradual changes to temperatures, rainfall, sea level, time in drought and days over 35 degrees Celsius. Acute risks include tropical cyclones, east coast lows, extreme rainfall, hail, storm surges and bushfires.

The guidelines cover scenarios involving global warming below and above two degrees Celsius.