The Commonwealth Bank and the CSIRO are joining forces to investigate how climate change will affect different sectors of the economy, with CBA planning to use the data to drive down the emissions of large corporate clients.
As the Glasgow climate summit puts the spotlight on the challenges facing the financial sector in funding de-carbonisation, CBA and the nation’s top science body are launching a project aimed at helping financial firms manage climate risks.
Under the partnership, CBA is providing funding and data from a large range of industries that are likely to be affected by climate change, including manufacturing, infrastructure and agriculture.
CBA said the CSIRO would use the data to develop scenarios for different sectors, which would help businesses understand the risks they faced and how they could adapt.
The results of the project will feed into what CBA calls “glide paths” for carbon reduction. The bank has already been working on “glide paths” for high-emitting sectors – thermal coal mining, upstream oil, upstream gas, and power generation – and last week it said it would soon announce “glide paths” for all industries.
CSIRO’s chief executive Dr Larry Marshall said the project was seeking to help businesses adapt to climate change, which could be a form of competitive advantage for Australia.
“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,” Dr Marshall said.
CBA chief executive Matt Comyn said CBA and CSIRO would work together to help businesses understand the risks they faced, how they could adapt, and the investment opportunities from a lower-carbon 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,” he said.