with you the outcome of our thematic review on the risks we are seeing for the dutch financial sector. third and finally, i will say a few things on what this means for bank risk management and supervision. all in the hope that we all will walk away here with a better understanding of how sustainability can affect our different organizations. and convinced that it makes perfect sense to incorporate sustainability into our day - to - day operations. i. mission : sustainability on the agenda of dnb let me begin by explaining how sustainability got onto the agenda of dnb, thereby also showing in the process why this issue fits the mandate of central bank and supervisor. you see, not too long ago, sustainability to us just meant we should ensure that our coffee cups were made out of sustainable paper, and that the coffee in those cups was fair trade. sustainability was something we certainly thought that was important, but it was not something that concerned our core tasks or our strategy as an organization. ( and i ’ m guessing we were not the only organization to think like this. ) that changed in 2011 though, when the newly appointed board of dnb concluded that probably this was the appropriate time to update the mission statement. we had to answer the question : what is our existenzberechtigung? it ’ s something i ’ m sure many of you have had to deal with as well, whether as a supervisor or as a commercial bank. mind you, this happened in 2011, when we had just lived through the global financial crisis. europe was still in the midst of a sovereign debt crisis, and emergency measures were taken all around us. it had become clear to us, the new board, but also to many bankers and many economists we talked to, that a significant part of the economic prosperity that our societies had created in the early 2000s, had been based on excessive leverage. our economies had seen too much credit growth, which was not adequately backed up by underlying strong economic and financial fundamentals of companies, households and even of governments. all of these developments were in the back of our mind when we had to come up with that new mission statement for dnb. one obvious implication of all of this being at the back of our mind, was that safeguarding financial stability was to be a crucial part of this mission. another implication was that we wanted to incorporate an element of the general good of the societies we serve, contributing to increases in living standards and prosperity of those we serve. but there was

’ s increasing demand, a hype, or new market opportunities and instruments, there ’ s the risk of creating a new bubble. while we are still far away from a green bubble, institutions do tell us that green projects have become more and more expensive, as competition has increased with more and more institutions essentially bidding for the same projects. a second risk we see is green washing. do investors and consumers know what green is, when they ’ re buying green? there are examples of a green bond being used to make a coal plant more sustainable. in itself, there is nothing wrong with that, or at least that ’ s not for us to say, but what is important is that purchasers of these bonds should be aware of this. here, too, the work of the european commission on a sustainable taxonomy as well as on standards for green bonds, will be most welcome. lastly, we are seeing an increased lobbying effort to lower capital requirements to stimulate green investments. andreas has already touched upon this, so i won ’ t repeat that, other than that we wholeheartedly agree : capital requirements should remain risk based. we are thus quite skeptical of the expected plans of the european commission in relation to prudential requirements, even though they also acknowledge the risk based nature of capital requirements. iii. supervision : implications for bank risk management and supervision so let me end with what this all means for bank risk management and supervision. the main conclusion is that banks, including those present today, will need to manage material climaterelated risks. and that supervisors will need to supervise this. this is of course easier said than done. if anyone in this room already knows how to exactly manage climate - related risks, please join us at the podium in a minute! two things are important to keep in mind here. one : incorporating climate risks is greatly facilitated when governments impose clear and long term transition legislation, which gives banks the ability to steer towards a set of well - defined goals. this is exactly what we are seeing with the energy efficiency requirements of dutch offices. two, for many parts of our economies, unfortunately there is not yet any clear legislation that allows banks to anticipate such a set of well - defined goals. in those cases, banks would still do well to try and gauge how their business models and which parts of their balance sheets would be most strongly affected by the transition and which type of legislation or technological change might be expected in those sectors. it would then be prudent