Collating comprehensive metrics of this kind will not be straightforward, given the very uneven state of current company level reporting (Table 4). And any model-based substitutes would need to meet high standards of robustness and transparency. It is therefore possible that the initial approach may be relatively parsimonious, or vary by sector. Table 4: Climate data coverage for CBPS-eligible firms  14  All speeches are available online at www.bankofengland.co.uk/news/speeches and @BoE_PressOffice  14  Tilting CBPS purchases leaves the relevant bonds still eligible for purchase.23 In some cases, we may wish to go further and remove that eligibility. As I said earlier, eligibility criteria relating to the primary monetary policy objectives of the scheme and financial risk management will be retained. As we calibrate our new framework, we will consider whether these should be extended to include climate-related requirements. Chart 10: UK roadmap to mandatory TCFD-aligned disclosure24  Two immediate possibilities are covered in the Discussion Paper. The first relates to the potential to use CBPS eligibility criteria to help improve the coverage and quality of UK companies’ climate disclosures. Comprehensive disclosures are not only a critical building block for orderly transition – they would also help investors, including the Bank through the CBPS, to calibrate more effective tilts and other investment strategies. The Government has published a roadmap to mandatory TCFD-aligned 23  The current list of bonds eligible for the CBPS is available at: Documentation | Bank of England. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/933783/FINAL_TCFD_ROADMAP.

These are known as ‘transition risk’ and ‘physical risk’ respectively. In response, investors are increasingly keen to see those responsible for managing their savings take more forceful actions to support transition to net zero – channelling their holdings away from firms whose activities are seen as incompatible with that transition, and towards those whose are.10  For much of its history, the Bank of England has not itself been a direct investor in corporate assets. And, more recently, our primary engagement with the financial sector on climate issues has been to ensure that banks and insurers can manage their large transition and physical risks effectively, and in ways that do not threaten system-wide stability. In 2019 we became the first supervisory body globally to set formal expectations in this area. And this year we are conducting a system-wide exercise to assess its resilience to the sorts of climate scenarios shown in Chart 2.11  10  I discussed these trends in more detail in https://www.bankofengland.co.uk/-/media/boe/files/speech/2020/from-hot-air-to-cold-hardfacts-speech-by-andrew-hauser.pdf?la=en&hash=5D73B8F9748EC41ECFFAD676A6D1D71A93703E15 11 For more extensive information on the Bank’s work on climate change, see Climate change | Bank of England. 4  All speeches are available online at www.bankofengland.co.uk/news/speeches and @BoE_PressOffice  4  In 2016, however, the Bank’s Monetary Policy Committee (MPC) voted to purchase £ of sterling corporate bonds in the secondary market as part of a package of measures designed to ease monetary conditions following the referendum on leaving the European Union.