Instead, the regulatory  BIS central bankers’ speeches  1  framework needs to be adjusted in such a way that the focus is again put more squarely on market-economy principles such as individual responsibility and private liability.
To achieve this understanding, we need more data on individual and systemic climate risk exposures, prudent methods of measuring vulnerabilities to climate risks, and analytical frameworks with longer horizons. At present it is not entirely clear to what extent market participants adequately price climate-related risks.