Guest Blog - APRA’s Draft Climate Risk Guidelines: Five Key Takeaways for Australian Lenders

During April 2021, the  Australian Prudential Regulation Authority (APRA) issues the second phase of the draft climate risk reporting guidelines. In a follow up Blog to What does APRA’s Draft Climate Risk Guidelines mean for Australian Companies, XDI’s sister organisation, Climate Valuation, noted the following five key points of interest for all Australian branks, mortgage brokers and lenders:

Five Key Takeaways for Australian Lenders:

Climate Valuation summarise the five key insights that Australian lenders must take away from APRA’s Draft Climate Risk Guidelines:

1. There’s a clear move from one-off climate risk reporting to ongoing and dynamic oversight.

2. Climate Risk could favour first movers.

3. Inaction on climate change will inevitably bring legal and financial repercussions.

4. Banks and lenders are encouraged to look beyond reporting and towards innovative products and practices.

5. Bring in the climate risk expertise you need.

About Climate Valuation

Climate Valuation is a company specialising in climate risk to the residential property sector, providing physical risk analysis to financial institutions to support climate risk reporting and helping APRA regulated entities to fulfil their obligations under the Climate Vulnerability Assessments. Drawing on aspects of the TCFD guidelines as well as other international regulatory frameworks, Climate Valuation’s products and services are designed to support the Australian finance sector as it seeks to effectively address climate-related physical & financial risks to residential assets.

For more information about Climate Valuation’s services for lenders visit


For more information about Commercial – owned asset analyis and benchmarking or Counterparty – investment analysis of portfolio of companies contact XDI.

About XDI

XDI Cross Dependency Initiative provides physical climate risk analysis and reporting for financial service providers, business and government. We have worked with a wide range of financial sector and government clients including the British Columbian government, Legal and General Investment Management and Government of New South Wales. We work with a number of management consultancies in the UK and North America to provide the physical risk component of TCFD reporting. XDI’s analysis uses multi-award winning technology and is proven in the market. XDI creates detailed asset-by-asset failure risk, supply chain and transport risk and cost benefit analysis. We’re looking forward to helping businesses gain a better understanding of climate risk and prepare for what’s ahead in the post-pandemic economy.