To this end, under the JC3, a new subcommittee on data has been established earlier this year to take this work forward. These initiatives complement various ongoing efforts at the national level to strengthen national climate policies, institutions and frameworks. We will have the opportunity to hear more about these efforts over the course of this event. The 5 areas I have just mentioned are necessary but insufficient conditions to mitigate the worst effects of climate change. At the end of the day, actions at the individual firm level matter enormously. And the actions of financial institutions matter more than most given their role in the economy. The more we learn and observe about climate risks and practices in the financial sector, it is evident that we are still a long way from the breakthrough needed in how the financial sector thinks about and acts on climate issues. Such a breakthrough calls for financial institutions to recognise and reflect the systemic nature of the climate challenge in their business and risk considerations, and adopt an integrated and inter-disciplinary approach to climate issues. This means bringing together dimensions of climate science and technology with economic, social, risk and behavioural considerations. It means treating climate considerations not as a standalone issue, but one that is embedded in an institution’s growth strategies, risk management and business operations. It means committing substantial investments to build the capacity and culture needed to make long-term shifts in business activities that support and are aligned with climate mitigation and adaptation.

Regarding the monetary policy implementation, the main pillars of the Central Bank’s approach are its transparency, its accountability and its predictability. We, as a Central Bank, always favor a forward-looking approach. Given the increasing importance of its economic presence and close relations with the countries worldwide, it is crucial that Turkey improve its domestic markets to contribute to the efficient allocation of world resources. With this in mind, we will continue to implement structural reforms and our disinflation program to realize robust economic fundamentals. Final thoughts In closing, I would like to comment on what seems to be important in building a more robust and healthy global financial system and the world economy. The ongoing process of globalization, along with the revolution in information technology, is likely to continue in the future. One consequence of this trend is the intensifying competition at the global level. In this context, to benefit from this trend countries all over the world should react positively. The soundness of individual financial systems clearly affects the resilience of the international financial system as a whole. We should devote our efforts towards creating a healthier global environment by minimizing the volatility of international capital flows and the risk of contagion. More effective supervision and surveillance of banking systems is of the greatest importance in today’s international banking environment and the emphasis of the recent supervisory changes has been moving from the “rules-based” method of supervision towards a “risk-focused” supervision.