Similarly, the Circular will determine the circumstances in which bank foundations will be compelled to diversify their investments and, if appropriate, to relinquish control of the credit institutions which they own through the corresponding divestment. I trust that the period for public consultation of the Circular will open shortly. Second, the new European framework of resolution is already prompting, in most national jurisdictions, reflection on the institutional architecture of bank resolution. In the past, resolution agreements have required close collaboration between the various authorities involved in the process; namely, the supervisor, the resolution authority, if any, and the governments concerned insofar as the resolution has habitually required the use of substantial public funds. The experience in our country has been no exception. The current distribution of functions between the Banco de España and the FROB – whose Governing Committee includes representatives of the Ministry of Economic Affairs and Competitiveness, the Ministry of Financial Affairs and Public Administration, and the Banco de España – has required that the two institutions were intensely involved in the resolution processes. Thus, while the supervisor is responsible for initiating the resolution process of an institution and approving the resolution plans, the FROB must prepare these plans, put them into practice and, in sum, manage the State’s ownership interest in those institutions that received financial aid, including any future divestment. Consequently, the coordination between the Banco de España and the FROB has been pivotal in ensuring effective management of the crisis.

As you can see, the SNB is keen to deepen its understanding of the potential implications of climate risks for its work, and it is actively engaged at the international level to achieve this goal. Beyond its prerogatives with respect to monetary policy and financial stability, the SNB integrates its thinking on environmental sustainability into its operational activities. Environmental management at the SNB For many years now, the SNB has been fully meeting its sustainable development responsibilities in its day-to-day operations. Since 1996, the SNB has applied a systematic environmental management concept aimed at reducing its energy consumption. We publish annual reports detailing the environmental impact of our operational activities and the progress being made on this front. 9 Our strategy for reducing CO2 emissions is based on four pillars: first, avoid; second, reduce; third, replace existing solutions with cleaner energy sources; and, finally, offset. For the past eight years, the SNB’s operational activities have been carbon neutral. In other words, it offsets all unavoidable CO2 emissions by investing in a range of climate protection initiatives around the world, including wind farms, geothermal projects and photovoltaic plants. But the SNB’s commitment does not end there: we have also done pioneering work in introducing the first environmental impact assessment for banknotes. This work allows the SNB to assesses the environmental impact of a banknote over its entire life cycle, and it has inspired other central banks to do likewise.