Australian and New Zealand ESG Update

APRA releases guidance on climate risk for industry

The Australian Prudential Regulation Authority (APRA) has released climate risk guidance for banks, insurance companies and superannuation funds. The guide provides an overview of sound practice in governance, risk management, scenario analysis and disclosure of climate-related financial risks. There are no new obligations in the guide, however, APRA-regulated entities are being urged to start using the guidelines immediately, particularly regarding climate risk. The guidelines are not prescriptive, rather provide guidelines as to best practice.

Australian Ethical launches Visionary Grants

Australian Ethical’s philanthropic entity, Australian Ethical FOUndation, awarded $500,000 in grants for Australia’s new innovations in climate and tech solutions in the very first 2021 Visionary Grants program. The grants will be given to climate and technology projects that leverage unique and novel innovations to drive significant and sustainable positive impact to combat climate change.

See Consultation on draft Prudential Practice Guide on Climate Change Financial Risks for full guidance.

GII launches impact fund for women and girls

Global Impact Initiative (GII) is launching the Global Gender Equality Fund (GGEF), the world’s first actively managed impact investment fund focused on women and girls. The fund aims to have a major impact on the wellbeing of women and girls in Australia and globally, investing in companies promoting gender equality and supporting charities with gender-focused programs.

The fund is administered by global fund manager Robco. Investors can choose to take income from the fund, or to donate the money to chosen charities (Grameen, Malala Fund, UN Women, UNICEF and World Vision).