Insurers can be highly influential in bringing the realities of climate change into mainstream financial decision-making. To do so, we need a step change in three areas: reporting, risk management and return. 7  All speeches are available online at www.bankofengland.co.uk/news/speeches  7  Reporting Better corporate disclosure of climate-related financial risks is essential and the next few years will be decisive. On the demand side, current supporters of the Task Force on Climate-related Financial Disclosures (TCFD) are responsible for assets totalling $ trillion and include the world’s globally systemic banks, top 10 global asset managers, leading pension funds and insurers. Not surprisingly, supply is responding. Users of capital are providing increasingly sophisticated decisionuseful information. Four-fifths of the top 1,100 G20 companies surveyed in a recent TCFD report are now disclosing climate-related financial risks in line with the recommendations. Now is the time to get involved. The IAIS and UN Sustainable Insurance Forum are monitoring developments in disclosures closely: with a systematic survey of TCFD adoption by insurance firms and they will be publishing a paper on this early next year, including recommendations for any changes. The Climate Change Research Initiative (CCRI) will do the same. The next step is to make these disclosures mandatory. The UK and EU have already signalled their intents. But it’s time for every country to get involved because the world won’t get to net zero if the financial sector doesn’t know how our companies are responding. To watch we must be able to see.
Nevertheless, inflation remains very high and its convergence to 3% is subject to risks. Hence, we have communicated that the monetary policy interest rate has peaked in this cycle but that it will remain at its high current value until the macroeconomic situation shows a clear convergence of inflation to 3%. 7  . Keeping a low and stable inflation is not only desirable for the real economy, but also very important to develop fix income local currency market, which in turn, positively affect the real economy in the long run on a virtuous cycle. On the other hand, tight monetary policy, fiscal consolidation, and higher real exchange rate will also alleviate the external imbalance. The role of central bank in pursuing these macro-adjustments is instrumental to the development of a sound and deep local financial market. 3. Financial Policy developments of the Central Bank of Chile: Building a sound regulatory framework and an up-to-date infrastructure As I mentioned earlier, a deeper and properly regulated financial system contributes to financial stability, inclusion and increases welfare. Even though significant progress has been made in this regard, there are still challenges ahead to further strengthen our financial system. Let me now briefly explain how the Central Bank is contributing to the goal of improving the functioning of the financial market and keeping the resilience of our financial system. The financial policy agenda of the Bank has been quite active in recent years.