Progress on climate related disclosures Third, in 2020, the quantity and quality of climate disclosures was in its infancy. We had recognised the need for it to move from the static to the strategic, for it to be forwardlooking and for it to be comparable across firms. Now, mandatory disclosures for large corporates under the TCFD are a reality in the UK, and are driving the right conversations around board tables. Here at the Bank we are soon to publish our fourth TCFD-aligned report, overcoming challenges with each new report. And internationally the ISSB is due to build on the work of the TCFD by publishing its first global standards on climate later this year – in a fraction of the time usually taken. I have very little doubt that in the future we will look back at the ISSB's work as a fundamental building block of comparable global green markets. The growth of green finance Fourth, we have seen and continue to see growth in the green finance market. The share of green finance in total finance has steadily increased, reflecting burgeoning investor demand and the financial system's ability to innovate.3 That poses new challenges, including greenwashing, and markets regulators like the FCA are responding accordingly. But it's not only green products we need to see growth in. More fundamentally, we need to see an increase in transition finance projects that help business deliver long-term emissions reductions – greening our future economy, not just investing in the currently green.
Sarah Breeden: Climate action - approaching a tipping point? Speech by Ms Sarah Breeden, Executive Director for Financial Stability Strategy and Risk of the Bank of England, at Chapter Zero's fourth anniversary dinner, hosted by the Global Association of Risk Professionals, London, 18 April 2023. *** Firstly, thank you Chapter Zero and GARP for hosting me today, and for the opportunity to reflect on our collective progress in the transition to net zero. It is timely to do so. The latest IPCC synthesis reportOpens in a new window provides yet another stark warning of the impact that climate change will have on our planet. We are now a third of the way through the decisive decade; a decade where we will need to cut global emissions by over 40%, if we hope to limit warming to 1.5C.1 And yet global CO2 emissions continue to rise.2 For us to meet this challenge, we need to collaborate and to take individual responsibility for the role we each play. For the Government, it is to set out the pathway to net zero. For each of you here today – and the firms you represent – it is to apply those pathways in boardroom decisions; decisions that will not only help facilitate an orderly transition, but also help ensure the long-term relevance and value of the companies you lead. For the finance sector, it is to support and enable that transition.