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Source: Bank for International Settlements

That climate change is one of the key challenges of this century there can be little doubt. To what extent humankind will be able to rise to this challenge depends on several actors, each playing their role. Let me start by listing three of them:

  • individuals;
  • governments;
  • the market and financial authorities, including central banks.

The list is not, of course, exhaustive: it is meant to provide a background for what  I shall say when developing this meeting’s theme, emphasising among other things the role of central banks and financial supervisors. At the end, I am going to add some words on the Bank of Italy’s own sustainable investment policies.

A premise is in required. Whatever the eventual route to climate action, full awareness among the general public must be the starting point, at least in democratic countries that use the market to allocate economic resources. People’s awareness drives their choices as consumers, voters and investors. It thus ultimately shapes the performance of the whole cast of actors.

MIL OSI Global Banks