The Network for Greening the Financial System, NGFS, is a recognition of the need for global collective leadership and co-ordinated action to effectively mitigate and adapt to climate change. Central banks and financial supervisors take part, and my central bank is a member.
We are in particular aiming to improve our understanding of how climate-related risks may impact the financial system and the wider economy. Many questions have yet to be answered, but we are working to map the implications of climate change to better safeguard the financial system against these risks. Climate-related risks are unlikely to be sufficiently reflected in financial balance sheets and asset prices.