randal k quarles : disclosures and data - building strong foundations for addressing climate - related financial risks speech by mr randal k quarles, vice chairman for supervision of the board of governors of the federal reserve system, at the venice international conference on climate change, venice, italy, 11 june 2021. * * * introduction thank you for inviting me today. it is an honor to be here and, after more than a year of remote conversations, it is truly wonderful to see so many people in person. as chair of the financial stability board ( fsb ), i have the privilege of collaborating with the italian g20 presidency, the g20 finance ministers and central bank governors, and with the fsb membership on the most pressing issues affecting financial stability. 1 among those issues, one of increasing focus is understanding and monitoring climate - related financial risks. given the global nature of climate change, this demands a coordinated international effort. the fsb published last wednesday a climate roadmap that presents a comprehensive and coordinated plan to address climate - related financial risks. the fsb's roadmap dovetails with the ongoing work of the g20 sustainable finance working group ( sfw g ) to develop a broader sustainable finance roadmap. today, in my role as chair of the fsb, i would like to focus on the two foundational components of the fsb roadmap : disclosures and data. globally consistent, comparable, and reliable disclosures, as well as a broader set of high - quality, relevant data, together, can provide the basis to assess climate - related financial risks and the impact on financial stability. disclosure the fsb was an early leader in bringing attention to the importance of reliable, entity - level disclosures to assess and manage climate - related financial risks and opportunities. in 2015, the fsb submitted a proposal to the g20 to create an industry - led disclosure task force on climaterelated risks. 2 the work of this fsb - sponsored task force on climate - related financial disclosures, or tcfd, has led to greater recognition of the importance of climate - related financial risk and of comparable and reliable disclosure. the early development of industry - led recommendations and a usable framework by users and producers of this information was critical. the four core elements of the tcfd recommendations have provided a widely accepted framework for disclosures — covering governance, strategy, risk management, and metrics and targets. the task force has continued

and we are in the process of launching an important study on the effects of reforms aimed at ending too big to fail. this evaluation is being led by claudia buch, vice president of the deutsche bundesbank. conclusion this is an important time for the fsb. we are nearing completion of the post - crisis reform agenda, a major accomplishment. with that comes the opportunity to turn our focus to ways in which we can improve the fsb and prepare it for the next phase of its existence. we will work diligently to enhance our transparency and to expand our efforts to reach out to as many stakeholders as possible. we will prepare for the next crisis by making sure that our framework to assess vulnerabilities to financial stability is state of the art and remains so going forward. and, we will work hard to maintain the important reforms in place, ensure they are working as intended, and, where possible, improve them. 4 / 4 bis central bankers'speeches