We will act to encourage an earlier, and therefore more orderly, transition to a carbon-neutral economy. We will lead by example to help mainstream a culture of climate risk management throughout the economy.
To support an orderly transition to a carbon-neutral economy, we will
- Conduct a climate stress test for financial institutions in 2021, to help mainstream climate risk management. To facilitate scenario design, the Bank will publish a discussion paper in the autumn of 2019 and work with industry and other authorities through the Climate Financial Risk Forum and the Network for Greening the Financial System.
- Continue to encourage TCFD disclosures by UK financial institutions and companies to provide better information on climate-related risks and opportunities. We expect by 2022 that all listed companies and large asset owners will be disclosing this information.
- Lead by example by increasing transparency over the Bank’s exposures to climate risks and approach to managing them, and adopt best practice to reduce its own carbon footprint.
Find out how the risks from climate change affect the Bank’s core objectives: