It is actually fairer to focus on forecast errors as deviations from targets under a flexible inflation targeting regime may be deliberate on the part of the central bank. Evaluating the central bank's forecasts is thus important; that is investigating whether the forecasts systematically over- or underestimate outcomes and so on. It is also interesting to compare forecast errors for inflation, for the real economy – irrespective of the measure of resource utilisation used – and for the interest rate if the central bank publishes such a  9  10  The output gap in the figures is the output gap in real time. As the output gap is revised backwards when new data is published, the gap in the figures does not correspond to the gap published in, for instance, the Monetary Policy Reports. (10) A preliminary analysis is carried out in Svensson, Lars E. O. (2009), "Transparency under Flexible Inflation Targeting: Experiences and Challenges", www.larseosvensson.net. BIS Review 29/2009  forecast. Which forecast errors are most relevant for explaining why monetary policy, with the benefit of hindsight, could have been better? What were these forecast errors due to? A disadvantage of an ex post evaluation is that we have to wait at least a couple of years for the outcomes for inflation and the real economy for the full impact of the monetary policy measures to become apparent.
In 2017, the TCFD published its recommendations in terms of reporting. These guidelines take into account the double materiality of climate matters: both the information on the exposure of the company to climate change, and the information on the impact of the company on climate must be considered significant. Nonetheless, more progress is necessary concerning climate disclosure. A first step is the shift from ‘voluntary’ to ‘mandatory’ reporting. On June 7, G7 nations came to an agreement to make climate-reporting mandatory in line with TCFD recommendations. Mandatory requirements have been enforced in the EU since 2014, and will be extended to a larger set of corporates when the Corporate sustainability reporting directive (CSRD) will enter into force (expected to apply as of October 2022). It will also be completed by the development of a comprehensive set of EU sustainability reporting standards. The first set of standards would be adopted by October 2022. We expect that the international standards to be developed by the International Sustainability Standards Board (ISSB) will ensure interoperability with regional standards and offer common building blocks across jurisdictions and sectors. ***** Let me conclude in highlighting that we are just at the starting point of what we can do with and what we draw from those scenario analyses. Further collective work is needed to improve them. I have no doubt that we will succeed in doing so. Financial institutions need to step up their  effort to combat climate changes.