Adrian Orr: A near horizon - seizing the opportunities and managing the risks in the transition to net zero - the importance of climate-related financial disclosures
Remarks by Mr Adrian Orr, Governor of the Reserve Bank of New Zealand, delivered to a virtual roundtable, 28 May 2020.
The views expressed in this speech are those of the speaker and not the view of the BIS.
Talofa lava, tēnā koutou katoa, welcome everyone
Thank you to the organisers - McGuinness Institute, Simpson Grierson, and the Climate Disclosure Standards Board - for gathering us all for this important discussion.
Thank you also to Mr Mark Carney. I want to acknowledge your role in shifting the global financial system to a more sustainable perspective. You shook us awake with your 'Breaking the Tragedy of the Horizons' speech in 2015. Now, only five years on from your speech, a common topic across central banks and financial regulators more broadly is how can we best assess and address climate risks.
I also acknowledge the Climate Change Minister, James Shaw, and his personal commitment, financial expertise and leadership on this very important issue.
Today I will speak briefly to three points:
- Why climate matters to New Zealand's financial stability;
- The Reserve Bank's climate strategy; and
- The impact of COVID-19 in terms of risks and current opportunities.