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It is a pleasure to be here today – appropriately on screen and not on-site, thus leaving a smaller
carbon footprint.
The offices of De Nederlandsche Bank, where I usually work, have a view over the Amstel river.
When looking out of my window, I regularly see swans on the river.
It has a calming effect on me - seeing them gliding on the glittering water. They make it all look
so effortless, graceful, smooth. There never seems to be anything urgent about their movements.
But, such grace above the water conceals the effort of their feet just below the surface.
This conference is about the role of finance in the transition to net-zero. Similar to the effort
required for the swans to propel themselves, if the financial system is to play its part in a smooth
and graceful transition, swift action is required. Climate risk must be incorporated into all financial
decisions. This is a goal which will require significant changes to business practices and to
policy.
I want to join others at this conference in stressing the increasing urgency of such action. And I
want to underscore the role that the FSB will play in supporting it.
Russia’s invasion of Ukraine has demonstrated the reality of transition risk, and its relevance
even over a short time horizon. It has triggered an intense debate about governments’ currentand future energy policies, as it has profoundly changed the global economic and financial
At the same time, risks from climate change keep rising. In February, the Intergovernmental
Panel on Climate Change (IPCC) published its Sixth Assessment Report2. It paints an alarming
picture of the physical risks of climate change. The report warns of more frequent and intense
extreme weather and climate events. It warns of unavoidable climate hazards over the next two
decades even with global warming of the targeted 1.5 degrees. The consequences of exceeding
that target are even more dire.
Together, these developments should reinforce, rather than deflect from international
sustainability ambitions.
As I mentioned at the start, the financial sector must play its part, both to help meet net zero
targets and to manage the financial risks from climate change. The two goals are closely
connected. If the transition to a low carbon economy is delayed or disorderly, the global economy
and financial system will face significant risks. This was the conclusion of recent climate scenario
analysis and stress tests conducted by financial authorities across various jurisdictions. By
further deepening our understanding of these financial risks, we can not only protect the financial
system, but help to give greater impetus to a timely and orderly transition. The FSB Roadmap
for addressing climate-related financial risks has been developed to coordinate ambitious
actions to assess and address these risks...
more at FSB