s event because it shares the sense of urgency that is felt across industries and territories. bis central bankers ’ speeches global population growth, climate change and dwindling natural resources are threatening the wellbeing and welfare of every person on this planet over a period of many decades. furthermore, the financial crisis has awoken us to the fact that many existing approaches to business and finance are unsustainable. economic development cannot be considered durable when : – natural resources are being depleted ; – growth rates do not fully reflect potential long - run costs to society ; – - and short - term gains of a small group are achieved at the expense of the long - term health and stability of the system as a whole. now, originally, sustainability was driven by the climate debate and its many passionate stakeholders. as a result of the recent crisis, however, the financial industry has become fully aware that sustainability is its responsibility, too. after all, climate change, economic growth, financial stability and social wellbeing are inextricably and systemically linked. the unep ’ s inquiry comes to a similar conclusion. as simon zadek will discuss later, central banks and regulators are considered key to achieving a financial system that contributes to sustainable development. this potential is unfulfilled, however, in spite of many encouraging efforts by peers from around the world. the bank of england is one of them. in a recent address, governor mark carney spoke about the profound and long - term effects of climate change on issues such as property, migration, political stability and food and water security. in spite of the threat this poses to our financial resilience and long - term prosperity, little is done to mitigate it. this is because of short planning horizons related to short business cycles, short political cycles and the mandate of central banks. carney called this the tragedy of the horizon and he argued it could be broken by combining data, technology and expert judgment. this, he said, can help us achieve : – a better understanding of risks ; – better pricing for investors ; – better decisions by policymakers, – - and a smoother transition to a lower - carbon economy. these and other concerns are being shared by the financial stability board, of which i am member and which carney chairs. in april, g20 finance ministers asked the financial stability board to consider how the financial sector could take account of the risks climate change poses to our financial system. in response, the fsb initiated the

prudential policy frameworks. as the challenges of financial globalization only became apparent recently, these policies still require time and analysis. moreover, booms have been missed many times in the past. this should remind us that even new solutions may not always be bulletproof. conclusion allow me to conclude. despite these challenges, the fears about the rise of asia should not be exaggerated. rotterdam ’ s euromast may not be able to compete with asian buildings, but its harbor is thriving thanks to trade with china. and meanwhile, amsterdam ’ s buildings from the time of the verenigde oostindische compagnie increasingly attract asian tourists. bis central bankers ’ speeches