The Bank’s response to climate change

Quarterly Bulletin 2017 Q2 article
Published on 16 June 2017

By Matthew Scott, Julia van Huizen and Carsten Jung

  • Climate change, and society’s responses to it, present financial risks which impact upon the Bank’s objectives.  These risks arise through two primary channels:  the physical effects of climate change and the impact of changes associated with the transition to a lower-carbon economy.
  • The Bank’s response has two core elements.  First, engaging with firms which face current climate-related risks, such as segments of the insurance industry. Second, enhancing the resilience of the UK financial system by supporting an orderly market transition.
  • Forming a strategic response to the financial risks from climate change helps ensure the Bank can fulfil its mission to maintain monetary and financial stability, both now and for the long term.

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