The Actuaries Institute has released an Exposure Draft of proposed Practice Guideline 8 (PG 8): AASB S2 Climate-Related Disclosures and is seeking feedback from Members.

PG 8 is an Australian adaptation of the International Actuarial Association’s ISAP 8: IFRS S2 Climate-Related Disclosures, developed to support actuaries providing services in connection with Australia’s mandatory climate-related disclosure requirements under AASB S2.

The Practice Guideline is intended to promote consistent and high-quality actuarial practice in areas such as climate scenario analysis, financial impact assessments, and climate-related risk and opportunity assessments, while aligning Australian practice with international standards.

The CSPC will hold an Insights session on PG 8 on 25 August 2026, the session can be attended in person or virtually. Register here.

Consultation is open until 31 August 2026, with the guideline proposed to take effect for Applicable Services commencing on or after 1 January 2027. 

The Climate and Sustainability Practice Committee (CSPC) is a high-impact committee leading the contribution of the actuarial profession to Climate and Sustainability practices by promoting best practices through education, research, communications and events, and contributing to professional and public policy discussions.

If you’d like to be a part of this important work, we are seeking enthusiastic volunteers for two exciting sub-committees: Professional Practice and Research.

This is a fantastic opportunity to enhance your expertise, contribute to sharing knowledge about climate change and sustainability with the wider Institute membership and make a meaningful impact in this area.

Applications close on 28 August, with meetings to commence in September 2026.

We encourage all members working in, or curious about, climate and sustainability to explore the Climate and Sustainability Resource Centre and and sign up to the Climate and Sustainability Learning Resource which is free for members.

The Learning Resource includes an introductory course on actuarial contributions to the practice area, while the Resource Centre brings together the CSPC's public policy statement, quarterly newsletters and key papers from government, industry and international actuarial bodies.

The IAN 200 is expected to be formally released in September 2026, which will complement the Practice Guideline 8 that the Institute released for member consultation and is expecting to take effect from 1 January 2027.

In light of this, the CSPC will be developing scenario analysis guidance to support actuaries working in this area.

The next IAA Climate & Sustainability Committee meeting will take place in September.

There was a webinar on "Catastrophe Modelling in a Changing Climate: What Actuaries Need to Know" presented by Matthew Nielsen and Julia Borman and moderated by Rade Musulin and Ryutaro Yamada. The webinar was designed to help actuaries:

• Understand how catastrophe models are being adjusted to reflect climate risk
• Recognise the limitations of relying solely on historical data
• Understand the implications for actuarial applications
• Critically interpret and use catastrophe model outputs

APRA released the results of its Insurance Climate Vulnerability Assessment (CVA), a prudential stress test exploring how a changing climate could affect home insurance affordability and the insurance protection gap over the coming decades.

On 16 June 2026, APRA provided background and key insights from the Insurance CVA and discussed the implications for households and the financial system.

• ASIC issued early observations on sustainability reporting ahead of 30 June 2026. ASIC has seen an increase in the quantity and quality of climate-related financial information in the market compared to previous voluntary climate-related disclosures. Read more.
• The AASB published new educational material to support entities applying AASB S2 Climate-Related Disclosures. The resource provides guidance on how to provide high-quality information about an entity’s climate-related transition when applying AASB S2 and covers any climate-related transition plan it may have, including both mitigation and adaptation efforts. Find out more.

The Department of Climate Change, Energy, the Environment and Water (DCCEEW) published their final National Climate Scenario Guidance for climate physical risks. They have included some of the feedback provided by the Actuaries Institute during the draft consultation.

The International Sustainability Standards Board (ISSB):

• Tentatively decided not to add incremental requirements for disclosing scenario analysis used to identify nature-related risks but did support additional disclosure on how scenario analysis is used to identify nature-related opportunities and assess the effects of nature-related risks
• Tentatively decided to require entities to use nature-related scenario analysis to provide information on resilience, broadly aligned with IFRS S2’s approach to climate scenario analysis
• Agreed that the proposed IFRS Practice Statement should reference the TNFD LEAP approach as a potentially relevant tool for identifying nature-related risks and opportunities, while making clear that LEAP would not be mandatory.