The Commonwealth Bank and the CSIRO will investigate the effects of climate change on different sectors of the economy to help financial services companies manage and reduce risk.
Announced as the COP26 summit continues in Glasgow, the project will see CBA provide funding as well as anonymised data from industries that are already being, or likely will be, impacted by climate change including manufacturing, infrastructure and agriculture.
The CSIRO will use this data to develop scenarios and analysis for various sectors which CBA will combine with its economic and financial insights to highlight the impacts on the economy.
“We believe our collaboration with CSIRO will better inform our approach on how to play a leadership role in supporting Australia’s transition to a more sustainable economy,” said CBA CEO Matt Comyn.
“The best scientific insight, combined with our data and insights, means CSIRO and CBA are well placed working together to help businesses understand what risks they face, how they can adapt and what opportunities are available to create jobs and investment in a lower carbon economy.”
CBA and the CSIRO said the scenarios developed as part of the project can be used to provide an estimate of exposure to climate risk in different sectors.
Researchers from the CSIRO will focus on filling information gaps for the finance sector that include identifying the economic impact of climate change in different geographical areas.
“CSIRO’s unique climate intelligence, supercharged by Australia’s largest data and AI network, and quantitative analytic capabilities can help financial institutions like Commonwealth Bank navigate an uncertain future,” said CSIRO chief executive Dr Larry Marshall.
“Australian businesses can lead our national response, especially when they have access to Australia’s world-class science and insights to guide meaningful, impactful investment in growth opportunities balanced by risk mitigation.”
The insights from the collaboration will be made available publicly.
