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.

Every major systemic bank, the world’s largest insurers, its biggest pension funds and top asset managers are calling for the disclosure of climate-related financial risk through their support of the Taskforce for Climate-related Finance Disclosures (TCFD).1 Investors controlling over $ trillion in assets (across Climate Action 100+, UN PRI, and the Net Zero Asset Owner Alliance) want to see transition plans to a low carbon world from their portfolio companies. 2 This is backed by the critical roles that Multilateral Development Banks, Development Finance Institutions and National Development Banks are playing to accelerate their support to low carbon growth. Achieving net zero will require a whole economy transition—every company, every bank, every insurer and investor will have to adjust their business models. This could turn an existential risk into the greatest commercial opportunity of our time. As the Secretary of State said, finance is the COP 26 deliverable that “makes all the others - adaptation and resilience, nature, energy transition and clean road transport- possible.” The scale of these requirements are enormous: $ trillion in infrastructure investment alone every year for decades.3 All forms of finance: public, private and blended finance will play a part. Public finance to support a fair and inclusive transition across our economies. Development and blended finance to support adaptation and resilience. And mainstream private finance to help all companies realign their business models for net zero. The objective for the private finance work for COP 26 is simple: ensure that every financial decision takes climate change into account.