And to illustrate the importance of getting that focus back, let me draw on a parallel from history. One of the most fundamental reforms – if not the most – of the international financial system was the Bretton Woods Agreement of 1944. Wisely, our predecessors did not wait for the Second World War to end to determine what the future should look like, and thereby tackle problems that had beset the inter-war period. There are two strong messages from Bretton Woods that we should have at the front of our minds. Don’t wait for today’s problem to be over before setting the course for the future. And, once again we need a multilateral approach, and we have the opportunity to strengthen that multilateralism. But, if you read the history of Bretton Woods, you learn that the Agreement was not easy to reach and there were costs attached to it, 2  All speeches are available online at www.bankofengland.co.uk/news/speeches and @BoE_PressOffice  2  which had to be met. It laid the platform for a sustained recovery from a terrible crisis. There is a lesson in that story. So what are we as a central bank and regulator of the world’s leading global financial centre doing to ensure the financial system plays it part to tackle climate change? Our goal is to build a UK financial system resilient to the risks from climate change and supportive of the transition to a net-zero economy.
For market discipline to work, it is essential that companies provide relevant and meaningful disclosures. Investors, in turn, can play an important role by scrutinising disclosures and providing relevant feedback to companies where boilerplate disclosures are ambiguous or unhelpful. Companies must similarly play their part to engage their stakeholders proactively. The engagement between companies and shareholders should be conducted responsibly by both parties. Companies should avoid taking an overly-legalistic approach in their dealings with shareholder queries as that can only engender distrust. Rather, they can have more regular dialogues with their investors to facilitate understanding with their investors, and to build a strong relationship that is based on openness and mutual respect. The rights of all shareholders should be respected. Investors in turn should engage companies in a constructive manner, and avoid unfounded allegations or speculative attacks. Industry associations are another key enabler group to foster strong market discipline. The Singapore Institute of Directors, as the national association of directors, advocates good governance practices through its conferences, training sessions and publications. The Securities Investors Association (Singapore) also serves to connect and empower minority shareholders, through efforts such as its initiative to raise the standards of queries at AGMs. 3/4  BIS central bankers' speeches  Other players in the CG ecosystem matter too. Journalists, analysts, academics, lawyers, other advocacy groups and the general public – all can contribute to raising of industry-wide CG standards through their reports and research.