For that very reason, even though I am a central banker and supervisor, I must say that it’s not just about mitigating risks. There are opportunities too. hink about the great demand for renewable energy and new infrastructure, creating new investment opportunities in a low yield environment.
Think about the massive supply of green, social and sustainable bonds, giving financial institutions the opportunity to broaden their investment base. Think about the fees you can collect, by actively managing portfolios with the climate in mind. But investing and lending with the climate in mind isn’t yet standard industry practice. We have seen fine examples in the financial sector from forerunners.