We have adjusted our corporate bond holdings and changed our collateral and risk management to better reflect climate risks and at the same time provide incentives to support the green transition of the economy. As supervisors, we make sure that banks consider climate risks when making business and lending decisions.
We also stress test the impact of climate change on the economy and financial stability. Through our advice, analysis and actions, we aim to manage the financial risks stemming from climate change as well as provide evidence to support the need for the transition I just mentioned.