of innovative tools for measuring and monitoring c & e risks is also gaining momentum – among supervisors and banks. for instance, in our supervisory dialogue with banks as part of the thematic review, we have started to discuss real client cases to understand how thorough banks are being in their assessment of their clients ’ sustainability trajectories. we are also piloting tools aimed at improving our insights into how well banks are identifying and responding to the transition risk of their corporate clients. our joint supervisory teams will soon start another round of feedback sessions with banks. these will give banks a better idea of where they stand relative to their peers. i would like to take this opportunity to invite the banks to use these exchanges to share more good practices and to clarify any of their practices that we have so far overlooked. after these feedback sessions, banks will receive comprehensive letters setting out any identified shortcomings together with concrete follow - up actions. i have referred to the progress that banks are making, which is in itself encouraging. however, as a supervisor we will only be satisfied when all banks are fully aligned with all of our expectations. this will be our mindset when we draft our feedback letters later this year. because for all the encouraging progress we are seeing, there is still a long way to go. and this is a journey that needs to be completed as swiftly as possible. the way ahead after last year ’ s supervisory exercises, virtually all banks developed action plans to advance their practices. we have since asked banks to speed up their efforts. in more than 80 % of cases, banks intend to complete the actions set out in their plans before the end of 2023. however, there is still a group of banks whose plans lack sufficient detail across the board and do not define clear and ambitious timelines for their actions. having assessed the banks ’ action plans and the progress made in their practices for two years now, i see it as reasonable that banks can be fully compliant with all our expectations by the end of 2024 at the latest. at the same time, we remain open to listen to arguments of banks that may render this not feasible in individual cases. the absence for some banks of a thorough and complete assessment of the c & e risks and their materiality cannot be a reason for lack of progress and should be remediated promptly. conclusion let me conclude. the recent basel committee principles confirm the urgent need for banks and supervisors to incorporate the management of climate - related and environmental risks into their practices. the

mugur isarescu : the power of the mind opening address by mr mugur isarescu, governor of the national bank of romania and president of the romanian association for the club of rome, at the annual conference of the club of rome “ the power of the mind ”, organized by the club of rome, the romanian association for the club of rome ( arcor ) and the national bank of romania, bucharest, 2 october 2012. * * * dear colleagues of the club of rome, honoured guests, ladies and gentlemen, it is a pleasure and a privilege for the romanian association for the club of rome and for the national bank of romania to be the host of the international conference of the club of rome, here in bucharest, with such a challenging topic : “ the power of the mind ”. as we all know, 2012 is an anniversary year for the club of rome, since we are celebrating the 40th anniversary of the first report to the club, which was entitled “ the limits to growth ”. when this report was published, it created shockwaves all over the world, including the communist countries. i can testify this, because i addressed comments concerning this issue when i was a young research fellow, after graduating the university. actually, i confessed to my colleagues that my first public appearance in 1973 was related to the club ’ s first report. but the debates were not limited to romania or to europe. they were manifest all over the world, and are still continuing today. i dare to sustain that nowadays, with the global economic crisis still ongoing and this fight for resources, the above - mentioned issues appear to be highlighted even more now than in 1972. of course, today, being in recession, particularly we in europe are in recession, we dislike considering limits to growth, except perhaps putting some limit to money supply growth. not all the predictions of the club of rome came true. nevertheless, it has initiated not only debates, but also radical changes in human behaviour, many of them still ongoing today – for example the environmental movement that started early in the ‘ 70s with the first report to the club of rome ; or the need to increase the efficiency of energy consumption ( just recall how big and low efficient american cars were 40 years ago ). but, above all, these debates have changed our way of thinking. like albert einstein used to say, “ the world we have created is a product of our thinking ; it cannot be changed without changing our thinking ”. related to this