was discussed to limit the number of votes to the current 18. a consensus was eventually reached to set the number of votes at 21, ( 6 for the executive board and 15 for the ncb governors ). it was also decided to grant the 6 executive board permanent voting rights, as they are appointed by a special european procedure. • representativeness indicator. as the ecb is an economic and not a political body, the use of the population criterion appeared as inappropriate, even if it is used for the capital key together with gdp, and initially using exclusively gdp was favoured. however, it was increasingly found that the contribution of the financial sector, through which the ecb steers liquidity and interest rates, should also be taken into consideration. moreover, the financial criterion, in contrast to gdp or population, is not purely national, but reflects the effective contribution of the various central banks to the eurosystem. it is also in line with the experience of the american federal reserve system where no reference has been made to the relative weight of the various us states. instead, according to section 2 of the federal reserve act, the criteria are based on convenience and " customary course of business ". reflecting their importance as financial centres, the presidents of the new york and chicago federal reserve banks enjoy respectively a permanent voting right and a 50 % voting right in the federal open market committee ( fomc ), against a 33 % voting right for virtually all other fed presidents. several financial indicators such as the monetary aggregate m3, capital of credit institutions, bank deposits / loans and the total aggregated balance sheet of the monetary financial institutions were analysed. preference was given to tabs - mfi for conceptual, legal and statistical considerations. from a conceptual point of view, tabs - mfi is the broadest measure for the size of the financial sector. a legal definition exists in community law and the statistical framework is well established and consistent. • concerning the relative weights for the composite indicator, the ecb proposed in its official th th recommendation to give gdp a weight of 5 / 6, against a relative weight of 1 / 6 for tabs - mfi 2. 3. technical elements of the ecb recommendation in its recommendation, the ecb proposed a dynamic rotation model which, in the steady state, will have 21 voting rights. the executive board will have 6 permanent voting rights while the 27 governors, allocated to three groups on basis of the composite gdp - tabs indicator, will have

reported on a recent study by the earth commission7 that even at a 1. 5 degree increase in global temperature means more than 200 million people would be exposed to unprecedented temperatures and 500 million could be exposed to long - term sea - level rises. a horizon which once appeared distant, is now closing in fast – with decisions made in the here and now crucial to averting more disastrous outcomes. climate risks and the banking sector – rising expectations climate change and the transition to net zero is something which will affect the whole of society ; and while the financial sector is by no means the most exposed part of our economy, in many ways it is to the fore of the risks and opportunities these changes present. for bank balance sheets reflect the real economy which they serve. and so an existential challenge to one means an existential challenge to the other ; and a fundamental change to our economy naturally requires a fundamental change for its banks. the reality also is that we need the financial sector to take a leadership role in addressing this challenge – for without genuine engagement of the financial system we will go nowhere fast. jose manuel has spoken well on the eba ’ s roadmap for sustainable finance, and the good work they are doing. for my part i would like to touch on my own expectations for the banking sector both from my role as deputy governor of the central bank of ireland and as a member of the supervisory board of the ecb. while some have talked of mission, or indeed mandate, creep, in fact embedding climate - related and environmental risk management in the banking system goes to the very heart of what we do. as supervisors our fundamental expectations are that banks identify and effectively manage the risks you are exposed to. as is increasingly clear, climate risk, both physical and transition, are no longer hypotheticals – but rather realities of our every day. furthermore, these risks will only continue to grow and crystallise throughout the lifetime of your banking books, as the effects of climate change and the transition to a new world play out. 8 for this reason, exposure to climate - related and environmental risks is a supervisory priority of both the central bank of ireland and the ecb. we are fully aware that integrating such risks into risk management processes is no easy task – and while it should be led by individual banks, it needs to be fostered by regulators, both through supervisory dialogue and the highlighting of best practices. 9 in this regard, 2022 saw some important supervisory exercises conducted at both a