venture capital and private equity. we have to take account of that in our supervision. of course, such investments require a sufficient level of knowledge and expertise to manage these products responsibly. to further tailor the way we supervise, we have developed a good practice guide for sustainable risk management. we will update the guide this year and we also intend to include frequently asked questions to provide clear explanations and expectations. i hope these tools will encourage the financial sector to use forward - looking indicators. to apply scenario analyses rather than focus on historical track records. and motivate 4 / 5 bis - central bankers'speeches the sector to implement a concrete transition plan and more long - term, sustainabilityfocused kpis. i will now come to a conclusion. financial institutions play a crucial role in our societies. they play an important role in creating sustainable prosperity. so we need the financial sector to act urgently. we need to speed up the transition to become climate neutral by 2050, in line with international goals. we have to shift that green energy day on the calendar as fast as we can. there is no time to lose. the world needs the financial sector's help in financing the transition to a carbon - neutral society that is in harmony with nature. and we need the sector to manage its climate - and nature - related financial risks. they are often two sides of the same coin. we will only succeed if we join forces – supervisors, governments, financial institutions and other private parties. so let's check in today, and take up the task that lies before us – together. 5 / 5 bis - central bankers'speeches

within our mandate. and as a public institution at the heart of the financial sector we want to lead by example and, albeit in a small way, contribute to international sustainability goals. international goals regarding climate change and legislation also applies to us, evidently. this is why we are committed to integrating sustainability considerations in all our core tasks by the end of next year. 1 / 5 bis - central bankers'speeches two things stand out. first of all, no matter how you look at climate change, it will have an impact, one way or the other. ignoring mitigation of climate change, will increase the costs of adaptation and will pose serious risks for the economy as we know it. but effective climate risk mitigation also comes at a cost in the short term, that may impact the economy, financial institutions and financial stability. however, the cost of dealing with the consequences of climate change far outweighs the cost of a timely transition. whatever the route will be, central banks and financial supervisors will, given their mandate, always prefer a predictable and orderly transition path. secondly, green policies need to be coordinated at an international level to make them more effective and to create a level playing field for economic actors. but that doesn't mean waiting for the others. if we don't take the lead as the developed world, with our technological and financial might, countries like india and china will be even less inclined to speed up their energy transitions. let me now focus on the role of financial institutions, in particular sustainable investments, which is at the heart of this seminar. so in our role vis - a - vis financial institutions, what do we – as supervisor and regulator find important? we do not tell financial firms how they should run their business. our primary concern is that they have their management of climate - and nature - related risks in order. to give you an example. engagement is a hot topic at the moment, in other words trying to change the course of a company as a financier, versus divesting, stopping with financing. given our role, we have always remained relatively agnostic in this debate. as a financier, you can influence a company's decisions. a company that is currently a polluter can make a substantial contribution to the transition if it has a credible transition plan in place. you can also argue about how the world will be helped if you sell your shares or stop financing a company out of sustainability concerns, which may only open