26 September 2023

Auditor finds climate risky for NSWPS

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A performance audit into how effectively the Department of Planning, Industry and Environment (DPIE) and the NSW Treasury have supported public sector Agencies manage climate risks that could possibly threaten their assets and services has found the support to be insufficient.

In her Report Managing climate risks to assets and services, Auditor-General, Margaret Crawford said Treasury estimated that climate risks could result in significant costs through damage to transport, communications and energy infrastructure, increases in hospital admissions and making social housing or school buildings unsuitable.

“DPIE and NSW Treasury’s support to Agencies to manage climate risks to their assets and services has been insufficient,” Ms Crawford said.

“In 2021, key Agencies with critical assets and services have not conducted climate risk assessments and most lack adaptation plans,” she said.

“DPIE has not delivered on the NSW Government commitment to develop a Statewide climate change adaptation action plan.

“This was to be complete in 2017.”

Ms Crawford said there was no adaptation strategy for the State, something which had been released in other Australian jurisdictions, and NSW’s draft strategic plan for its Climate Change Fund was also never finalised.

She said DPIE’s approach to developing climate projections was robust but it had not effectively educated Agencies in how to use the information to assess climate risk and Treasury did not consistently apply dedicated resourcing to support Agencies’ climate risk management until late 2019.

Ms Crawford said that in March, DPIE and NSW Treasury released the Climate Risk Ready NSW Guide and Course which were designed to improve support to Agencies.

“More work is needed to embed, sustain and lead effective climate risk management across the NSW public sector, especially for the State’s critical infrastructure and essential services that may be exposed to climate change impacts,” she said.

The Auditor-General made 10 recommendations in total, two to both DPIE and NSW Treasury to enhance the coordination of climate risk management across Agencies and to implement climate risk management across their clusters.

She made four recommendations to DPIE to strengthen supports that improved Agencies’ management of physical climate risks to their assets; monitored Agencies progress in managing the risks to their assets; reviewed relevant land-use planning, development and building guidance; and delivered a climate change adaptation action plan for the State.

Ms Crawford recommended Treasury strengthen climate risk-related guidance to Agencies; coordinate guidance on resilience in infrastructure planning; review how climate risks have been assured in Agencies’ asset management plans; and monitor how effectively Agencies were reflecting the effects of climate-related matters in their financial statements.

The Auditor-General’s 52-page Report can be accessed at this PS News link.

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