To this end, Bank Negara will finalise plans this year for mandatory climate-risk disclosures by financial institutions in consultation with the financial industry. Let me conclude. Climate change is an unprecedented challenge. The economy and society cannot be separated from the environment and our actions have to be cognisant of this. While we are making progress, there remains considerable scope for the financial sector to be more deliberate in considering the impact of climate change on risks and strategy. There is significant potential for the financial sector to provide guardrails for economic activities to stay on the path towards a low carbon and climate-resilient economy, and in doing so, avoid a more destructive path that will inflict untold harm on current and future generations. The Dutch businessman, Paul Polman, once said “Climate change is sometimes misunderstood as being about changes in the weather. In reality it is about changes in our very way of life". Financial institutions must take a deeper interest not just in how changes in the weather can affect them, but importantly, in how they affect the weather. The path to a more sustainable future depends on it. Thank you. 1 Aeon Weather, Climate & Catastrophe Insight: 2020 Annual Report (Back) 2 Aeon Weather, Climate & Catastrophe Insight: 2020 Annual Report (Back) 3 4/5  BIS central bankers' speeches  3 Grantham Research Institute on Climate Change and Environment (Back) 4 www.accenture.com/us-en/insights/strategy/green-behind-cloud? c=acn_glb_sustainabilitymediarelations_11307639&n=mrl_0920 (Back) 5 www.unepfi.org/news/industries/unep-fi-member-ant-financial-uses-app-to-reduce-carbon-footprint-of-200-  million-chinese-consumers (Back)  5/5  BIS central bankers' speeches

13.12.2019  Welcome address Conference “Financial integration and inclusive development: A view from the Mediterranean Countries”/Banco de España e Instituto del Mediterráneo (IEMed) Pablo Hernández de Cos Governor  Good morning ladies and gentlemen, It is a great pleasure for me to welcome you all to this Conference on Financial integration and inclusive development: A view from the Mediterranean Countries, hosted by Banco de España and jointly organised with the European Institute of the Mediterranean (IEMed) and the support of the Organization for Economic Co-operation and Development (OECD). Let me start by thanking our colleagues from the European Institute of the Mediterranean and from the OECD for their cooperation in organising this Conference. The European Institute of the Mediterranean (IEMed), created in 1989 with the participation of the Spanish Ministry of Foreign Affairs and Cooperation, the Government of the Autonomous Community of Cataluña, and the Barcelona City Council, incorporates a broad representation of civil society and is a leading institution in the analysis of Euro-Mediterranean relations. In accordance with the principles of the Euro-Mediterranean Partnership's Barcelona Process, and with the objectives of the Union for the Mediterranean, the aim of the IEMed is to contribute to mutual understanding, exchange and cooperation between the different Mediterranean countries. And Banco de España is delighted to collaborate to this objective in the field of economic and financial relationships. Our second partner today, the OECD, is playing an invaluable role in the international arena to shape policies that are decisively contributing to the well-being for all.