Climate Measurement Standards Initiative (CMSI) is an industry-led collaboration between insurers, banks, scientists, regulators, reporting standards professionals, service providers and supporting parties. The initiative develops open-source technical business and scientific standards for climate physical risk projections of future repair and replacement costs of real estate and infrastructure assets in Australia.
The CMSI project is addressing the need for consistency in climate change models and information across the finance sector.
The Initiative will develop a set of open-source standards for the disclosure of climate-related physical risks by companies with financial interests in physical assets, including residential and commercial buildings or other infrastructure in Australia. These companies will include banks (who use those assets to provide security), insurers (who provide insurance for those assets), and asset owners (who derive income from those assets).
The ICA is a participating member and is contributing to the development of each of the three parts. The ICA is particularly interested in the applications to develop the standards to enable us to disclose risk in a consistent way as we deploy customer facing tools.
Measures of Success
There are three parts to these standards: financial disclosure guidelines, scientific guidelines, and three reference scenarios. The CMSI published its first report in the second half of 2020.