Bearing these basic ideas in mind, the Bank of Japan is engaged in active dialogue with financial institutions on how to grasp and manage climate-related financial risks. The Bank intends to further accelerate these initiatives. At the same time, the Bank of Japan itself has to extend its knowledge of the methods used to measure these risks, such as stress testing.
Given the significance and complexity of the issues surrounding climate change, international cooperation with various stakeholders, including financial practitioners and scholars, is essential, and so initiatives like this workshop become important. I have talked about the Bank's initiatives from the financial system aspect, but as I pointed out at the beginning of my speech, the effects of climate change extend beyond this aspect.