Climate Change and Financial Risk: The Impacts of Rapidly Evolving Regulation Across APAC

Navigating new forms of volatility

Snapshot:

Organisations are facing increasing risks related to the physical impacts of climate change, changing consumer and investor preferences, and shifting regulatory frameworks.
The climate related regulation of financial markets is evolving at a rapid pace, with voluntary disclosures giving way to more standardisation and transparency across the APAC region.

Addressing climate-related financial risks can help protect company performance and contribute to a more sustainable and resilient future for corporates, investors, and financial institutions. Regulation has the potential to influence, and even accelerate, the development of products and markets to manage these risks.

Working in partnership with the Institute for Sustainable Futures (ISF) at the University of Technology, Sydney (UTS), Aon has been exploring how regulation may influence innovation of new products and services to help organisations meet their climate change financial risk management obligations.

In this article we present some of the key findings from the ISF report Aligning climate-related products with financial system regulation, published in 2022. We also share two case studies exploring the question of whether regulation or innovation comes first, and a snapshot of the latest regulatory developments in Australia, Japan, Hong Kong, and Singapore.

First Name *
Last Name *
Business Email *
Business Phone
Job Title *
Company *
Country / Territory *

Aon and other Aon group companies will use your personal information to contact you from time to time about other products, services and events that we feel may be of interest to you. All personal information is collected and used in accordance with our privacy statement.

Please click here to manage your communication preferences.

Navigating the path to a more comprehensive climate-related regulatory environment in Asia Pacific creates new forms of scrutiny, elevated challenges, as well as uncharted opportunities for companies to adapt and innovate. As your organisation looks to address the risks and impacts of climate change holistically, Aon is here to support your journey towards a resilient and sustainable future.

For more insights from Aon on climate regulation in the Asia Pacific region, please read our overview of climate disclosure activities across the region in our article Rising to the Challenge of Climate Disclosure, and our deep dive into what good climate disclosures look like in our article Climate Disclosures: Value Beyond Compliance.