this kind of coordination. third, we need to tackle – preferably on a global level – the lack of common definitions and taxonomies, as well as data and metrics. without doing this, it is difficult to gauge the micro - and macroprudential impact of climate risks. we need to know more about the different risks of green and brown assets. therefore, i wholeheartedly support the request of the ngfs to establish a taxonomy of economic activities, including for green, non - green, brown and non - brown assets. we must fill the data and information gap we face as quickly as possible. fourth, from my perspective we cannot afford to wait until we have a perfect understanding of all these risks to take action. climate change will not adapt to our research schedules. so i am in favour of establishing, at least at the european level – and preferably even at the global level – a common set of supervisory expectations about how banks should deal with climate change and environmental risks. we could start with a modular approach, first addressing the governance issues before going into the technical topics. fifth, banks need to make progress in methods and practices for assessing climate changerelated risks. yes, it is about governance in banks – whether these types of risk are fully embedded in the risk management framework. but it is about risk assessment techniques, too. so we should foster a stronger risk management perspective and techniques with regard to climate - related risks ; it is about having an adequate mapping and classification of “ at - risk ” assets and including them in banks ’ forward - looking risk strategies with a longer time horizon than banks commonly use for assessing “ traditional ” risks. we all know how difficult it is to set key assumptions and different plausible scenarios for assessing the potential impact of these risks. 2 / 3 bis central bankers'speeches from a system - wide financial stability perspective, we will continue to monitor the transmission channels of climate - related risks. and thorough research, as well as intense discussions about scenario designs, will give us an idea of the range of possible impacts of climate change on the financial industry. the ecb has begun work to compute the impact of climate - related changes on banks ’ capital positions, on other financial intermediaries and, ultimately, on the supply of funds to the economy. one study, in particular, considers the channels through which climate - related risks are propagated to the economy as a whole. it finds that these risks will affect the earnings of the corporate

has been considerably enhanced and strengthened since 2008, its continued development should be ensured when necessary. we are ready to explore all options within our mandate to ensure we can continue to fulfil our responsibilities under the treaty, i. e. promoting the smooth operation of payment systems and ensuring the effective transmission of monetary policy, for which the stability of the centrally - cleared repo segment of euro money markets is crucial. 1 / 2 bis central bankers'speeches ( ii ) technical innovation let me now turn to the second point. how the financial ecosystem is experiencing rapid change due to technical innovation. the eurosystem is responsible for operating two of the systems that form the backbone of financial markets in europe, namely target2, the real - time gross settlement system for the euro, and target2 - securities ( t2s ), a service for the integrated settlement in central bank money of securities transactions. the smooth operation of these services is crucial for maintaining confidence in the euro and to support monetary policy operations. furthermore, it plays a central role in ensuring the stability of the european financial system and in boosting economic activity. the eurosystem market infrastructure is designed to meet the highest levels of safety and efficiency. efficiency covers multiple dimensions : of course it means low costs for institutions that use the infrastructure, but it also implies the opportunity for them to benefit from a range of functionalities that bring added value to the services offered along the value chain. the eurosystem is continuously looking for ways to improve the efficiency and lower the costs of its market infrastructure. it also considers how best to respond and take advantage of technical innovation and meet new user needs, while staying ahead of evolving risks such as cyber risk. in this regard there is also a need to assess if technical innovation can create opportunities to improve financial services. nevertheless, a certain level of caution is needed when technological innovations are applied to financial markets. for innovations to be used in the financial system an essential requirement is that they are proven safe in order to avoid any negative consequences. consequently, if and when innovations are proven to enhance the provisions of financial services without harming safety, they should be explored. ecb working as a catalyst for market integration as a public authority the ecb will keep a watchful eye on technical innovations and assess their possible impact on financial markets. we do this work together with standard setting bodies. the first condition is that innovations are proven to be safe before they find their way into the market. second, it is equally important