sites / default / files / 2019 - 11 / 20191118 - iaresponsibleinvestmentframeworkglossary. pdf all speeches are available online at www. bankofengland. co. uk / news / speeches and @ boe _ pressoffice system as a whole cannot. and divestment strategies based on backward - looking carbon metrics give no scope for incentivising climate - enhancing investment in high - carbon sectors. chart 17 strategies for integrating climate considerations in asset allocation decisions a ‘ theme ’ strategy aims instead to look across sectors, constructing portfolios of assets issued by firms with a particular climate approach. examples include firms focusing on the production of climate - enhancing technologies, firms with credible transition strategies in place, or sharing a common supply chain. depending on the theme chosen, such strategies typically require somewhat more granular and timely climate metrics than screens. but they remain somewhat binary in composition, and can lack diversification. a ‘ tilt ’ strategy starts from the same investment universe as a standard market capitalisation - weighted index, but then adjusts the weights on individual securities or sectors in that index up or down to reflect various climate factors. a common tilt might be ‘ low carbon ’, in which portfolio weights are adjusted based on a measure of each issuer ’ s carbon footprint – or better still a forward - looking assessment of an issuer ’ s transition trajectory to net zero, such as that produced by the transition pathway initiative. 39 tilt strategies avoid binary composition issues of the previous strategies, and can be dynamic in nature as the parameters used to construct the portfolios evolve. but they can be more reliant on those very consistent, decision useful and forward looking metrics i mentioned earlier, which are not yet universally available. https : / / www. transitionpathwayinitiative. org /. all speeches are available online at www. bankofengland. co. uk / news / speeches and @ boe _ pressoffice ‘ unconstrained ’ investment – the final category in the chart – is a catch - all for the wide variety of active management strategies that investors can employ, either across an entire portfolio, or as an overlay. such strategies may for example be driven by top - down or bottom - up research, or by quantitative statistical analysis of correlations between environmental factors and risk - adjusted returns. while such approaches have at least the potential to deliver stronger performance, by substituting judgment or modelling for

welcome remarks governor john rolle seminar on exchange control liberalisation and future developments 5 february, 2017 the central bank is pleased to welcome participants to today ’ s seminar on the administration of exchange controls ( ec ) in the bahamas. this event is being held to provide more information on the recent liberalisation measures. we seek to promote better awareness of the distinction between exchange controls current account or traderelated transactions versus those on capital and financial flows. this has a bearing on how discussions about liberalisation of international financial flows could be approached. we also expect to receive constructive feedback on how the various administrative processes can be further improved. over time the bank expects that our focus will narrow to just those issues related to capital and financial flows and how these can be managed for the benefit of the economy. the bank anticipates a further rapid shift in delegated responsibility to commercial banks to process foreign currency applications for trade - related payments. this will leave more space on our work agenda to explore and prepare for relaxation of capital flows. it should be stressed though that the bahamas is not presently in the position to make a large leap to more liberalised, unfiltered financial flows, such that the stability of our exchange rate would be preserved. this is especially so considering the very liquid nature of flows to which some stakeholder groups aspire. preparation is still required to strengthen our institutional capacity to function in a transformed environment, and to improve the structural health of the economy. some of our important stakeholder groups do not yet fully acknowledge the trade - offs that could be involved between the extent of liberalisation introduced, and difficulty it would pose to preserve the fixed exchange rate. also, the bahamas has not built the sufficiently informed national consensus on what the final state should look for either liquid flows or direct investments. “ informed consensus ” means that the positions adopted should be based on proficient understanding of how the economy is structured ; the nuts and bolts of how the economy works ; how foreign exchange gets from where it is earned to where it is needed ; and how, in the absence of capital controls, pricing mechanisms could dictate how foreign exchange gets allocated. as prepared for delivery. but the messaging seems clear : we want less administrative involvement of the public sector in the commercial activities of the private sector, balanced with the objective of keeping the outcomes stable. how does the central bank fit into this process? in our strategic plan for 2016 - 2020 the bank mapped out goals to pursue a constructive approach with both internal and