As was experienced during the recent global financial crisis, among other reasons, the greed of insensitive financial engineers for short term gains caused huge financial and economic damages to some of the most developed nations and markets. This has, in fact, become a major focus of discussions across the jurisdictions after the financial crisis.
We acknowledge that the current ESG ratings are an imperfect measure of climate risk, and support the development of more consistent, comparable and forward-looking data and scores.29 We also support research on sound climate-risk assessment methodologies (such as scenario analysis, and stress testing for transition and physical risks), participating in Eurosystem-wide developments.