“Central bankers have done a good job of talking the talk, but there’s still a delay in walking the walk. With the Intergovernmental Panel on Climate Change warning we only have eleven years to limit climate catastrophe, central banks like the Bank of England have no time to waste in implementing the recommendations of this NGFS report, which have already been one and a half years in the making.
“Today’s report is an important call to action, but the severity of the crisis demands that individual central banks go further than the cautious recommendations offered. The Bank of England must start by integrating sustainability into its asset purchases and collateral framework as soon as possible. It should also become compulsory for all banks and insurance companies to reveal their high-carbon lending and investment, in preparation for the next logical step – regulations that actively penalise financial support for fossil fuels.
“Only by hardwiring sustainability into every aspect of its work will the Bank of England be equipped to meet the existential threat posed by climate change to the financial system and our planet.”