In response to the Federal Opposition’s recommitment to a net-zero emissions target for 2050, Emma Herd, Chief Executive Officer of the Investor Group on Climate Change said:
“We are seeing an increasing consensus among investors and the business community that a 2050 net-zero emissions target constitutes the responsible economic management needed to address systemic climate change risk.
“Only today we have seen the Australian Prudential Regulation Authority flagging that it will stress test major financial institutions on climate risk. Other important financial regulators like the Reserve Bank and ASIC have also recognised that climate change presents a material risk to our economic prosperity.
“Meeting the goals of the Paris Agreement will significantly de-risk the Australian economy by guarding against the ratcheting physical and financial impacts of climate change such as worsening extreme weather, rising insurance premiums and the prospect of stranded assets.