Central bank executive board member warns finance sector of climate risks

The finance sector “certainly underestimates” risks associated with climate change and the transition to a green economy, Andreas Dombret, executive board member of the Deutsche Bundesbank (German central bank) said at an event at the National University of Singapore. “It’s not new to us that climate change affects each and everything. Our standards of living. Migration flows. Technological developments. The economy,” Dombret said. Data on climate-related risks was “scarce and often chaotic”, because there was “no framework that standardises their disclosure,” he said, explaining that in its capacity as a supervisory body, the central bank could “foster awareness of physical and especially transition risks, and make sure that they are taken seriously. Where appropriate, we will also incorporate climate-related risks into our supervisory risk analyses.” The bank will hold its annual symposium next year with an emphasis on Green Finance.

Find the full speech in English here.