But despite that progress, when the Bank was reunited with the PRA we knew that we still had to do much, much more. So three years ago we made Diverse and Talented a central pillar of our first strategic plan. We value diversity for at least three reasons. First, it is the right thing to do; a public institution should seek to reflect i  the public it serves. Second, it helps to build the trust we need to deliver our remits. Third, it is well established that diversity leads to more creative thinking and reduces the risks of groupthink and bias. It isn’t enough for us to reflect diversity, however; we need also to choose inclusiveness. Inclusiveness unlocks the true value of an organisation’s diversity; through inclusion people can realise their full potential. That’s why as we increase the diversity of the Bank, we are focussing on building a culture that values diverse ideas, encourages open debate, and empowers people at all levels to take initiative. Since these two ideals go hand in hand, today I will reflect on both diversity and inclusion: what they mean, why they matter, and how they are best delivered in a modern central bank. The what There are two main types of diversity – identity and cognitive. Gender, ethnicity, age, disability, sexual orientation, education are all identity factors, which can be ii  measured, targeted and their impact assessed. As I will discuss in a moment, we have introduced diversity targets for the first time.
The TCFD report provides case studies – from Rio Tinto to Unilever to Citi – and finds common characteristics of good scenario analysis:   Using multiple climate-related scenarios to assess strategic resilience    Describing assumptions and parameters specific to the company    Identifying potential impacts of climate-related risks or opportunities    Disclosing potential strategic resilience under different climate-related scenarios  To develop leading practices, the TCFD has created a Knowledge Hub which provides guidance, research, tools, standards, frameworks and webinars.16  12  The Task Force encourages companies to describe the characteristics of their strategies that allow them to adapt to climate-related changes materially affecting their business while maintaining operations and profitability and safeguarding people, assets, and overall reputation. The TCFD report identifies that Investors are likely to need information on the range of scenarios considered by a company; implications of each scenario for the business; strategic options considered; and the reasoning around the strategy adopted. Another factor that may warrant disclosure is the company’s ability—and flexibility—to adjust its strategy in response to emerging climate conditions, including alternative ways to use resources and the robustness and redundancy of business processes. 13 TCFD Status Report (2019) pg. 64 14 TCFD Status Report (2019) pg. 63 15 TCFD Status Report (2019) pg. 62 16 This includes several industry associations and non-governmental organizations that have brought companies together to work through sector-specific approaches to climate change issues.