Climate Change Risk Management Guide
The Victorian Managed Insurance Authority (VMIA) released a guide outlining minimum requirements for managing climate change risks for Victorian Government organisations.
The guide states responsibilities for managers, executives, and Board members. It also includes information relating to legislative obligations and key next steps to help organisations review risk registers and risk reports.
There are several Acts that require Victorian Government organisations to consider climate change in management and strategic planning.
The key requirements covering most Victorian public sector agencies and the main expectations are as follows:
- The Climate Change Act 2017 requires agencies to consider climate change in government decision-making (s.20) and risk management is one of the guiding principles.
- The Victorian Government Risk Management Framework (VGRMF) requires agencies to consider its material risks in planning and decision-making. It also requires agencies to contribute to identification and management of state significant risks, which includes climate change. (The Standing Directions under the Financial Management Act 1994 require agencies to apply the VGRMF)
- The Public Administration Act 2004 requires boards of public entities to advise responsible Ministers and Secretaries of major risks. It also requires directors of public entities (i.e. Board members) to act with a “reasonable degree of care, diligence and skill” (S 79(1)(e)). A failure to consider climate change risks could breach this duty.
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