https://www.bundesbank.de/en/press/speeches/climate-risk-the-merits-of-transparency-and-the-role-of-central-banks-851634  2/4  24/11/2020  Climate risk – the merits of transparency and the role of central banks | Deutsche Bundesbank  Financial risks cannot always be avoided, but they must be managed, disclosed and be subject to adequate pricing. With the right information, risks can even turn into opportunities on our transition pathway to a more sustainable economy.
4 What central banks can do to encourage climate-related risk disclosure Now, what can central banks do to encourage climate-related risk disclosure aside from their roles in prudential supervision and ﬁnancial stability? The starting point is that central banks’ ﬁnancial assets are, like those of ﬁnancial institutions, subject to climate-related ﬁnancial risks.