Tilting is a well-developed investment practice, applied to climate-based central bank purchases by Dirk Schoenmaker,22 and has a number of key attractions: -  It will allow us to maintain a dynamic engagement with issuers – dialling up those whose strong record improves, and dialling down the laggards (a process illustrated schematically in Chart 9);  -  Similarly, it will allow us to improve the mix of climate metrics we use over time, as data coverage and quality improves;  -  Predictable, progressive action of this kind will send a clear message to issuers, and the wider market, about the Bank’s current and future intent, giving time and incentive to adjust transition planning; and  -  It will help avoid concentrations in the portfolio, and maintain space to use the CBPS for future monetary policy purposes, in either direction. 22  Greening-monetary-policy.pdf (bruegel.org) 13  All speeches are available online at www.bankofengland.co.uk/news/speeches and @BoE_PressOffice  13  Chart 9: stylised illustration of a climate-based tilt  To calculate the appropriate tilts, we will explore the use of a ‘scorecard’ approach, capturing a range of metrics related to company climate performance. Judging which metrics to include is a key task for the next stage of the work, and we look forward to receiving input and guidance on this question. Potential candidates include: the level and rate of change of companies’ carbon footprints, the existence of regular climate reporting, commitment to specific reduction targets, and authoritative third-party validation of those targets.

Although foreigners, including non-EU nationals, are present in all sectors and at all levels, their employment has increased mainly in professional and administrative support services, and not as is sometimes claimed, in sectors characterised by lower skill levels. The increased employment of foreign nationals across occupations has enabled organisations to grow and venture in new areas. A sudden reversal of this pattern could stall activity in several sectors. Efforts to upgrade the country’s infrastructure should therefore be complemented by measures that prevent a disorderly depletion of foreign human resources and enhance the skills of Maltese nationals. *** Favourable economic developments, although easing somewhat, are expected to continue to buttress financial stability. Lending volumes remain supportive of interest income but pressures on margins persist due to the low interest rate environment. Notwithstanding, profitability remains a challenge for traditional banking models such as those of our banks. In fact, though still comparing favourably with their European peers, the profitability of domestic banks has been slimming. In addition to the limitations on their ability to generate more interest income, banks have to contend with ‘no-fee’ alternative products being developed by fintech players which operate with a lower cost base and hail from a less intrusive regulatory environment. Concurrently, banks are facing a more rigorous and intrusive supervisory approach coupled with more rigorous standards of Anti Money Laundering and Combating the Financing of Terrorism. This is absolutely necessary and has our full and active support.