4 See PWC (2018), 21st CEO Survey, The Anxious Optimist in the Corner Office, https://www.pwc.com/gx/en/ceo-survey/2018/pwc-ceosurvey-report-2018.pdf 4  All speeches are available online at www.bankofengland.co.uk/speeches  4  Second, climate disclosures. There has been a series of actions to transform climate disclosures. 2017 was a record year for climate-related shareholder resolutions, with a threefold increase in motions (184 vs 63) and with investment managers controlling over 45% of global assets under management backing shareholder actions on carbon disclosure. Several of the world’s largest asset managers – including the two largest, Blackrock and Vanguard – have written to a number of public companies calling for such disclosures. Other long-term investors have joined forces to press for disclosure through groups such as Climate Action 100+ and the International Investors Group for Climate Change (IIGCC). Meanwhile ISS and Glass Lewis, who account for over 90% of the shareholder advisory services market, have updated their 2018 proxy voting policies to make clear that they will assess the adequacy of climate disclosure. 5  With the providers of capital demanding enhanced disclosure, and the TCFD recommendations providing a framework for doing so, a number of public companies have begun disclosing their climate-related financial risks for the 2017/18 year end. Reporters drawing on the TCFD include energy giants and extractors through to financials and consumer goods companies. The Task Force is delivering two initiatives to support this process.

The PRA survey finds that a majority of banks now see them as financial risks – rather than just a reputational or corporate social responsibility issues. As such, oversight of climate-related risks and overall responsibility for setting the climate risk strategy, targets and risk appetite has been elevated to Board level. Banks have begun considering the most immediate physical risks relevant to their business models – from the exposure of mortgage books to flood risk or, for globally active banks, the impact of extreme weather events on country risk. And they have begun to assess exposures to transition risks where government policy is already pulling forward the adjustment. This includes exposures to carbon-intensive sectors, consumer loans secured on diesel vehicles and buy-to-let lending given new efficiency requirements. But many banks have indicated that there is some way to go to identify and measure climaterelated risks more comprehensively, including given the need to improve data and expertise. This includes developing their approaches to stress testing for climate-risks as well as, over longer horizons, more dynamic scenario analysis. It is clear, however, that the TCFD framework is helping, including to identify metrics and promote use of climate-related scenario analysis. 6  Bank Underground post, forthcoming, See PRA (2015), The Impact of Climate Change on the UK Insurance Sector, https://www.bankofengland.co.uk/prudentialregulation/publication/2015/the-impact-of-climate-change-on-the-uk-insurance-sector 7  7  All speeches are available online at www.bankofengland.co.uk/speeches  7  Fourth, financial policymakers.