In order to address this  5  challenge, it is essential for various economic entities to play their roles, and firms and financial institutions are strongly aware of the need to deal with it over the long run. Major economies, including Japan, have pursued policy actions with the goal of decarbonization.
Although climate-related policies essentially are the responsibility of governments and legislative bodies, climate change is also related to central banks' mandates to achieve price stability and financial system stability. In other words, it could exert an extremely large impact on developments in economic activity and prices as well as financial conditions from a medium- to long-term perspective.