Leading Australian banks, insurers and asset owners, in conjunction with climate scientists, have developed new guidelines on assessing physical climate risk and disclosing its financial impact.
The Queensland Treasury Corporation has issued Australia's largest green bond, and National Australia Bank says it shows the growing importance of environmental investors.
Institutional investors now clearly accept the stranded asset risks associated with traditional fossil fuel investments, and are assessing how climate change might 'partially strand' other major assets, speakers told an investor conference in Melbourne.
New reports from an Australian group representing funds that manage more than $900 billion warn oil and gas reserves might have to remain unexploited and urge investors to seek climate change risk assessments from owners of large mines.