The Australian Prudential Regulation Authority (APRA) will hold a voluntary climate risk self-assessment survey as part of its supervision of the ways businesses are managing the threat.

The study is a follow-up to a 2022 assessment, Chair John Lonsdale says in a letter to regulated entities including insurers.

Insurance, banking and superannuation entities will be invited to complete an online multiple-choice questionnaire to assess the maturity of their practices against APRA’s guidance on managing the financial risks of climate change.

“The survey is intended to improve both APRA’s and industry’s understanding of the approaches being taken by APRA-regulated entities to identify, assess and manage climate-related financial risks,” the letter says. “In addition to providing insights into the management of financial risks arising from climate change, the survey will support incorporating climate-related risks into APRA’s supervisory assessments.

“It will also improve comparability, benchmarking and practices within and across industry.”

Click here for the letter.