Climate Risk Reporting

New Zealand is the first country in the world to make climate risk reporting MANDATORY for financial institutions. Under new legislation announced [in September 2020], large financial institutions need to report annually on governance, risk management, and strategies for mitigating climate change impacts. [Visit www.afr.com for full story]

This is relevant to us because, the islands of the Caribbean, like New Zealand, are vulnerable to climate change risk. But, how is this vulnerability acknowledged in our governance and legislative framework that drives how treat this risk? To start with, we are moving with small steps in the right direction. For example, the Bahamas[See Bahamas Ministry of Disaster Preparedness], is giving high-level recognition and formal structure around Disaster Risk. And what about the rest of the Caribbean? What are we doing about our Climate Risks? Mandatory Climate Risk Reporting is just the tip of the iceberg, allowing us to better understand what risks we might be facing.

We hope that, after the impact of this pandemic, Caribbean decision makers more widely appreciate the value of risk management and good risk information. Since data feeds decisions and demonstrates return on investment, we look forward to seeing more risk reporting and risk management implementation for the sake of the survival and sustainability of our countries and institutions.

Time is running out. It is time to act.