1 The full list of current TCFD supporters is available at: https://www.fsb-tcfd.org/tcfd-supporters/. 2 3  See https://www.unpri.org/signatories, http://www.climateaction100.org/investors, https://www.unepfi.org/net-zero-alliance/. https://www.iea.org/news/deep-energy-transformation-needed-by-2050-to-limit-rise-in-global-temperature. 2  All speeches are available online at www.bankofengland.co.uk/news/speeches  2  To do so, we will work with you – the private sector – to put in place the frameworks so that you can do what you do best – allocate capital to manage risks and seize opportunities across the economy. Determining who’s ready for the transition and who’s not requires: 1. Disclosure of climate financial risk to become comprehensive; 2. Climate risk management to be transformed; and 3. Investing for a net-zero world to go mainstream. On the road to Glasgow, we will focus on the three Rs: reporting; risk management; and return - to help unlock the private financial flows that are vital to the transition. This will support a wider shift to Paris alignment and be underpinned by public finance efforts to deliver $ To succeed we will need your support and your action. We will publish the strategy and how you can get involved when I formally assume my new roles, but following Sir David’s lead, I wanted to offer you an exclusive preview today. Reporting: improving the quantity and quality of climate-related disclosures by implementing a common framework built on TCFD An old adage is that which is measured can be managed. For COP 26 we want you to help refine and implement TCFD disclosure; and we will work with authorities to commit to pathways to make climate reporting mandatory.

The Federal Reserve’s role is to ensure that the institution has the necessary strong processes in place to achieve this objective. As risks emerge, supervisors intervene, within the realms of their safety and soundness mandates, to require that banks take corrective actions as necessary. Supervision can reduce the chance that a financial firm fails, but it can never provide a guarantee against failure. Supervisory policies have undergone important changes over the past few years, especially in the context of the largest financial institutions. Banking supervision no longer focuses solely on the safety and soundness of individual institutions – so-called micro-prudential supervision – but now also focuses on the implications for financial stability more generally. The evolving supervisory framework has resulted in a number of organizational changes in the way supervision is conducted at the New York Fed and in the Federal Reserve System more broadly. A very important change in the Federal Reserve System is that supervision of the largest, most systemically important financial institutions are now coordinated across districts through the Large Institution Supervision Coordinating Committee (LISCC). The LISCC is a System-wide committee, chaired by the director of the Board of Governors of the Federal Reserve’s Division of Banking Supervision and Regulation, and composed of senior officers at the Board and Reserve Banks. In addition, the Federal Reserve has instituted three major horizontal evaluations, which are a key element of the new enhanced supervisory framework for large banking companies.