During a high-level roundtable that gathered key figures from leading super funds such as AustralianSuper, UniSuper, and Australian Retirement Trust, the consensus was clear: the partnership with industry groups is crucial. Though APRA has earlier released guidelines on climate risk management, the roundtable further solidified the stance that industry collaboration is key to comprehensive risk management.
APRA elaborated on the meeting's outcome, noting the unified agreement with ASIC and top executives on the important function of industry bodies. "We all see the role these organizations have in helping trustees with reliable guidance and uniform metrics," they remarked. The emphasis was placed on the need for a collaborative framework to standardize information dissemination for climate-related financial decisions.
APRA suggested that introducing an industry code could enhance cooperation between trustees and regulatory bodies. Echoing these insights, ASIC pointed out that industry bodies could significantly aid in ensuring compliance, by offering practical and approachable guidance that would enhance the usefulness of climate risk reports in decision-making processes.
Commitments from APRA and ASIC highlight their dedication to bolstering the superannuation sector's capacity to manage climate and ecological risks. They aim to achieve this through precise guidance and support, pushing for coherent communication that aligns with global standards, thus ensuring sustainable investment portfolios over the long term.
The importance of maintaining consistent messaging with fund members was also emphasized by super fund CEOs. They deliberated on the difficulty of translating scientific data into significant insights for stakeholders, advocating for straightforward guidance, systematic metrics, and clear communication across all informative materials.
Moreover, the executives acknowledged their significant dependency on third-party climate data providers. They pointed out that the absence of standardized reporting hinders effective communication to members about climate implications on investments, a challenge needing resolution for improved trust and transparency.
The insights drawn from this roundtable underline a growing determination within the sector to respond strategically to climate challenges. The original perspectives in this article were discussed in a report by Mike Taylor, which explored the regulators' encouragement towards creating a comprehensive climate code for superannuation entities.
