makes an important contribution to our thinking and approach to managing climate and nature - related risks in a coherent manner. importantly, the financial sector needs to come to grips with the reality that like climate, nature - related risks are already presenting a significant threat to our economies and society that can no longer be ignored. the findings of this report lend impetus to the need to strengthen capacity in this area. the scientific community continues to issue the ‘ code red for humanity, ’ and with recent events, including the pandemic, floods and bushfires, the message could not be clearer. ecosystem and planetary health matters to economic and financial stability. while the primary responsibility for addressing these priorities rests with governments, the financial industry and authorities have a critical interest in deepening our understanding and appreciation of the interactions between climate and nature - related risks – because how these risks evolve both affect and are affected by the actions of financial institutions. this would enable us to also seize opportunities to tackle these “ twin challenges ” in an integrated manner. it is my sincere hope that today ’ s event, along with the release of the report, will encourage broader dialogue and increase awareness around nature - related risks and opportunities, in turn paving the way for concrete action on this important front. i would like to thank the world bank for this fruitful collaboration, and the esteemed speakers joining us today. i look forward to the engaging sessions ahead. read report : an exploration of nature - related financial risks in malaysia see also : bnm ’ s climate change website ipbes. 2019. “ the global assessment report on biodiversity and ecosystem services : summary for policymakers. ” [ link to ipbes ] 2 world economic forum new nature economy series [ link to pdf ] 2 / 3 bis central bankers'speeches 3 un biodiversity page [ link ] 4 sdg 8. 5 sdg 3. 6 " life on land ” is sdg 15, “ life below water ” is sdg 14. 7 network for greening the financial system. 3 / 3 bis central bankers'speeches

private investment development institutions should be leading innovators in providing solutions to stimulate investment and entrepreneurship especially in uncharted sectors. in my view, a key part of their contribution to development has to be in evolving non - traditional approaches to encourage investments in targeted sectors, precisely because conventional approaches have not responded adequately. indeed, they should be providing the richest environment for adaptive learning, creativity and innovation to effectively serve their mandates. innovation is also being supported through a “ test and learn ” approach which allows for experimentation by financial institutions in close coordination with regulators. this approach promotes a deeper understanding of risks inherent in new solutions and products, and the appropriate ways to control them. the introduction of the regulatory sandbox in several countries, including malaysia, to support regulatory flexibilities for the deployment of fintech reflects such a “ test and learn ” approach. development financial institutions should use technology to advance the cause of their mandate. to be innovative, development financial institutions must be able to attract and retain good leadership and talent. kfw in germany and business development bank of canada ( bdc ), two global development financial institutions, were recognised as being among the top 100 employers in their respective countries in 2017. well - designed talent strategies, and an environment that nurtures experimentation and adaptive learning with appropriate oversight and controls are key. these require bold and visionary leadership. another way to promote creativity is to create a facilitative environment for public private partnerships provides the best prospects to drive innovative strategies. with advances in technology, the scope and potential for such partnerships have increased exponentially. we see this in partnerships between mobile network providers and financial institutions in sharing data which can increase financial inclusion among borrowers that do not have a prior credit history. partnerships that leverage on e - marketplaces and social media platforms also have enormous potential to increase the reach and development impact through the deployment of innovative strategies. enhance corporate governance for many institutions, the ability to significantly increase their impact is closely tied to issues of corporate governance. narrowly defined financing targets and links between business and government have led to suboptimal resource allocations, increased moral hazard, and market 3 / 4 bis central bankers'speeches distortions. these can pose a drag on the economy and the overall development agenda. broader confidence can also take a hit on suspicion of undue preference in extending financing, making it more difficult to mobilise resources for development. the critical appraisal and monitoring functions are largely shaped by the strength of its corporate governance