Christine Lagarde, Managing Director of the International Monetary Fund, and Stanley Fischer, Vice Chairman of the Board of Governors of the Federal Reserve System, headlined a contingent of over 20 public sector authorities from around the globe. They were joined by the CEOs, senior executives, and board  9  Letter of Martin P. Dunn to the Office of Chief Counsel at the U.S. Securities and Exchange Commission’s Division of Corporation Finance, January 17, 2014. 10  Federal Advisory Council and Board of Governors, Record of Meeting, May 8, 2015. 11  See Supervision of Behavior and Culture: Foundations, Practice & Future Developments (Mirea Raaijmakers, ed. 2015). 12  U.S. Attorneys’ Manual, § 9–28.500. 13  See Memorandum of Sally Quillian Yates, Deputy Attorney General, regarding Individual Accountability for Wrongdoing, September 9, 2015. 14  See U.S. v. Allen et al., 14-cr-00272, Dkt. No. 147 (S.D.N.Y Nov. 6, 2015) (jury verdict against Anthony Allen and Anthony Conti). BIS central bankers’ speeches  3  members of global financial institutions. Together, they discussed methods of reforming culture and the continuing challenges in this effort. In my view, the workshop offered a number of useful insights, chiefly: •  Culture is a soft concept that is hard to measure, and perhaps harder to manage and sustain. But it is as important as capital and liquidity, and should receive continuous and persistent attention. •  A bank’s culture must be consistent with public expectations and promote behavior that considers the firm’s many stakeholders, including the public.
First, we often talk about how much we don’t know, but this doesn’t do justice to how much work has been done. We know that today three quarters of our emissions come from surface transport, heating our buildings, manufacturing goods, the food we eat, and producing electricity [figure 4]. By 2050 these emissions will have to be almost completely eliminated. Any remaining emissions, mainly from aviation and animal methane, where there are currently no viable alternatives, would need to be offset by increasing the lungs of the earth. For example, through planting more trees, sequestering carbon in soils and biomass crops. Although there are many differences across models, the key building blocks of the transition are pretty clear [figure 5]. Eliminating emissions from fossil fuels will require an increase in the share of renewables in the energy mix, greater electrification, improving energy efficiency, finding substitute fuels (like hydrogen or synthetic fuels) for use in heavy industry and transport, and capturing and storing emissions where it is most feasible or necessary to do so. Eliminating emissions from land-use requires us urgently to prevent deforestation and implement more sustainable agricultural processes related to tillage, crop cover, fertilizer use and animal-related emissions. A number of different types of policy measures can take us there.