Climate Measurement Standards Initiative

Posted on 12 Mar 2021
Updated on 12 Mar 2021
2-minute read

Guidance for banks, insurers and asset owners for assessing climate-related physical risk.

RESEARCH OUTPUTS

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In this project, Climate-KIC convened a group of representatives from science and the finance sector to develop guidelines for disclosure under the Task Force on Climate-related Financial Disclosures (TCFD) recommendations on physical risk for the Australian finance sector. ISF was commissioned by Climate-KIC to provide survey design and delivery and additional input to the process and outputs.

The Climate Measurement Standards Initiative (CMSI) developed guidance for asset owners, banks, insurers and traders of private and residential property in Australia, and for institutions whose role it is to oversee financial and community stability. The aim is that the guidelines will support consistent and comparable financial disclosure under TCFD recommendations.

CMSI appointed a finance committee, a science committee and an application committee which together engaged more than 120 industry experts. The science committee advised on relevant scientific methods, data and uncertainties for climate scenario analysis, the finance committee developed the financial disclosure guidelines and the applications committee provided feedback on the practicality of the scientific and financial disclosure guidelines.

The outputs from the project include:

A guide for Australian banks, general insurers and asset owners, titled ‘Scenario analysis of climate-related physical risk for buildings and infrastructure: Financial disclosure guidelines’.
A report that describes the scientific basis for producing climate projections and scenarios, titled ‘Scenario analysis of climate-related physical risk for buildings and infrastructure: climate science guidance.’

Climate Measurement Standards Initiative (Website)