Legal & Regulatory News
Bank of England speech on tackling climate change
03 June 2021On 3 June 2021, the Bank of England (BoE) published a speech by Andrew Bailey, Governor of the Bank of England, addressing the role that central banks must play in tackling climate change.
The speech addressed three key areas of the BoE's climate-related work:
- understanding climate risks across the broader financial system;
- developing and embedding climate risk management in regulated financial firms; and
- seeking to achieve best practice through its operations as a central bank.
The BoE is aiming to assess the resilience of individual banks, insurers and the wider UK financial system to different climate scenarios through a Climate Biennial Exploratory Scenario exercise which was launched on 8 June 2021.
The BoE has also set out its intention to 'practice what it preaches', and is committing to reducing emissions from its physical operations so they will be consistent with net-zero by 2050 at the latest.
Click here to access the full speech by Andrew Bailey.