2024 if they wish to avoid being subject to sanctions. the role of supervisors in monitoring and assessing efforts to incorporate climate risk into the management of financial institutions will be strengthened by the revised capital requirements directive ( crd ) and the requirement for banks to develop prudential transition plans. the exact content of these plans is currently being defined by the eba and eiopa. they will have to reflect both transition and physical risks, and their robustness will be assessed by the supervisor. finally, the banque de france and the acpr continue to participate in both european and international efforts, particularly to take greater account of climaterelated risks in prudential regulations, still using a risk - based approach, and more generally to improve knowledge and understanding of nature - related risks. 3. services to the economy and support for businesses in 2019, the ngfs clearly stated that climate risks are above all a societal and human risk, but also a financial risk. " as central bankers and supervisors, we therefore have a duty to concern ourselves with climate change in order to perform our monetary and financial stability mandates " ( f. villeroy de galhau ). the increasing risks associated with climate change are creating major challenges even for businesses. as such, to round out france's ecological planning strategy, the ecological transition financing committee ( cfte ) has tasked the banque de france with " devising a national climate indicator for businesses ". the aim of the climate indicator project is to provide companies with a free assessment of their transition, their exposure to climate hazards and the extent to which they are incorporating climate issues. 6 [ slide 11 ] the climate indicator, which aims to cover all aspects of climate risk, is broken down into three dimensions : 4 / 6 bis - central bankers'speeches transition ( ict ), drawing on ademe's accelerate climate transition methodology ( act ), measures alignment with a low - carbon world. 7 it compares the business's greenhouse gas emissions trajectory, projected on the basis of tangible actions in its transition plan, with its baseline trajectory, built around its activity volumes and sector baselines. 8 physical risks ( icp ) predict future trends in various climate hazards ( heatwaves, precipitation, hail, fire, drought, snow / frost ) projected under the ipcc's ssp2 - 4. 5 scenario, in the geographical areas to which the business is exposed. maturity ( icm ) reflects a more qualitative assessment of the company and

to the areas of most risk to consumers or the system. and, importantly, it will place consumer protection at the heart of day to day supervision. i firmly believe that these changes are not just important ; they are necessary – so that in a changing world we continue to deliver on our mandate in the public interest and in the interest of consumers. conclusion to conclude, the central bank and the hia are working hard to ensure that consumers get the best possible outcome. the insurance sector has an important role to play in ensuring that the products offered are clear, transparent and can be well understood. and consumers also have their own responsibilities in this regard – with increasing the level of financial literary in ireland an important objective to ensure they are equipped to act in their own best interest. and finally the financial sector is rapidly changing and becoming increasingly complex. in that regard, the central bank is changing too – so that we can continue to deliver for consumers in a more complex world. 1 see donnery " maintaining stability in the face of volatility – financial regulation in a rapidly changing world " november 2023 2 see central bank of ireland regulatory & supervisory outlook 2024 ( pdf 2. 08mb ) feb 2024 3 barry schwarz : the paradox of choice : why more is less 2004 4 see derville rowland https : / / www. centralbank. ie / news / article / speech - deputy - governor - derville - rowland - opening - remarks - for - launch - of - consultation - paper - on - reviewof - the - consumer - protection - code - 07 - mar - 2024 5 / 5 bis - central bankers'speeches