This report lays out how and why climate is core to our mandate, the risks of climate to our core functions, what we have done so far, and our future plans. It aims to raise awareness of the risks of climate change to financial stability and signal further work we will be doing in the climate space.
This is the first significant report that we have released since launching our Climate Change Strategy in 2018.
The climate has changed – both the physical climate and the economic, policy, legal and financial climate. Our response must evolve as well. Both physical and transition risks hold challenges for financial stability. Anything that challenges the stability of the financial system and our economy is our core business.
We support an urgent, aligned and collaborative approach domestically and internationally. The response needs to be at a scale and pace appropriate to the risks. The longer the delay the greater the potential for natural, social and financial disruption.
Across the world, central banks have been a key part of the climate change response. Like many other central banks, the Reserve Bank takes climate change seriously and this focus is intensifying, as seen in our progress in developing and implementing our three-pronged Climate Change Strategy.