A survey from the Reserve Bank of New Zealand – Te Putea Matua (RBNZ) has highlighted climate-related risks are at the forefront of financial service firms’ concerns, but indicates activity on tackling the issue has been limited.   

The self-assessment survey tested 41 financial entities, including insurers, on climate risk management and disclosure approaches, with 29 responding to the task.  

Nearly all respondents agree that they are at least “somewhat vulnerable” to climate-related risks, assuming no mitigation actions are taken, with three firms responding “unsure”.  

The respondents, bar one, also agree that climate-related risks are regularly discussed at governance meetings.  

However, the survey found that only three entities have “fully embedded” parts of climate-risk management into their practices.  

None of the organisations say they are “at risk” of not meeting mandatory standards, but a considerable majority note “significant further work” is needed in preparation for their first climate disclosure statements from next year.   

From next year, nearly 200 New Zealand organisations will be required to report on their climate-related behaviours, including governance, strategy, risk management, and targeted metrics.  

RBNZ says 16 of 29 firms have yet to undertake climate-related scenario analyses, although it says the groups have committed to do so within the next 12 months.   

“The findings from these surveys will help inform further work across the sector from both industry and regulators regarding the management and disclosure of climate-related risks,” the RBNZ said.