RB supports Sustainable Finance Forum’s interim report

“We commend the release of the Aotearoa Circle’s Sustainable Finance Forum interim report. We believe that climate change could lead to material economic and financial stability impacts and as a kaitiaki of the financial system, we at the Reserve Bank of New Zealand - Te Pūtea Matua have a strong interest in the effect that this will have on economic wellbeing of New Zealanders for generations to come,” says Reserve Bank Governor Adrian Orr.

“This is why we have linked up with our international counterparts via the Network for Greening the Financial System (NGFS) and the Sustainable Insurance Forum to strengthen the global response required to meet the goals of the Paris agreement. Through this network, we are working with more than 45 other central banks and supervisors from countries responsible for half of the world’s greenhouse gas emissions to enhance our role in the greening of the financial system, and the managing of environment and climate related risks.

“We launched our Climate Change Strategy last December, highlighting how we can address climate change through our core responsibilities including oversight of financial stability and prudential regulation of banks and insurance companies. Currently 60 percent of surveyed banks and around a third of surveyed insurers already disclose some information on climate risk. While this is great progress, we support further efforts towards a credible and workable climate reporting framework.

“We affirmed our Climate Change Strategy last month through the purchase US$100 million of green bonds via the Bank for International Settlements’ USD Green Bond Investment Pool - launched in response to the growing demand for climate-friendly investments among central banks.

“There is still a lot more work to be done, but we will be responding to the Sustainable Finance Forum’s call for leadership as we work alongside others in the finance sector towards a sustainable, productive and inclusive low carbon economy.”

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