Central Banks and Supervisors Network for Greening the Financial System (NGFS)
The Bank of England is a founding member of the Central Banks and Supervisors Network for Greening the Financial System. The Network was formed in December 2017, at the One Planet Summit in Paris. It was co-founded by eight central banks and supervisors, and, as of April 2019, has over 35 members and observers.
On 17 April 2019, the NGFS published its first comprehensive report, ‘A call for action – climate change as a source of financial risk’ following publication of its ‘First NGFS Progress Report’ in October 2018. The report sets out six recommendations for central banks, supervisors, policymakers and financial institutions to enhance their role in the greening of the financial system and the managing of climate and environment-related risks. Alongside the report, readers may find it useful to read an open letter on climate-related financial risks from Mark Carney, Governor of the Bank of England, Francois Villeroy de Galhau, Governor of the Banque de France, and Frank Elderson, Chair of the Network for Greening the Financial System (NGFS).
Sustainable Insurance Forum
The Bank also co-founded the Sustainable Insurance Forum (SIF). SIF is a global network of insurance supervisors and regulators, who are working together on sustainability challenges facing the insurance sector, including climate change.
Supporting enhanced disclosure
To allow markets to better assess, price and manage climate-related risks, the Financial Stability Board (FSB) has, at the request of G20 leaders, established the industry-led Task Force on Climate-related Financial Disclosures (TCFD). The Bank supports the TCFD, and has, for example, co-hosted a conference on scenario analysis in November 2017. The Bank has also committed to disclose an assessment of how it manages climate-related financial risk in the 2019/20 annual report. This will mirror the framework of the TCFD by disclosing how it integrates climate-related financial risks across its balance sheet and processes.