, including with respect to : governance, where firms will be expected to embed fully the consideration of climate risks into governance frameworks, including at board level, and assign responsibility for oversight of these risks to specific senior role holders ; risk management, where firms will need to consider climate change in line with their boardapproved risk appetites ; the regular use of scenario analysis to test strategic resilience ; and developing and maintaining an appropriate disclosure of climate risks. recognising the need for industry to build capacity and to develop best practices, the pra has established a climate financial risk forum, jointly with the fca, to work with firms from across the financial system. 11 the responses to our supervisory consultation reflect the urgency and significance of the issues. perhaps for the first time in financial regulation, firms are both thanking their supervisors for raising an issue and pushing us to go further ; with some asking for more prescriptive recommendations and others for mandatory disclosures. 12 certainly, while climate risk management is improving, there is more to do particularly when assessing strategic resilience. for companies, that means conducting scenario analysis. the tcfd 2018 status report found that non - financial industries ( energy, transport, building and agriculture ) were the most advanced at measuring strategic resilience, including some examples of scenario analysis. 13, 14 the tcfd review found that the financial sector is also moving toward enhanced strategic analysis. for example half of all insurance companies reviewed used the 2°c scenario, and the majority of banks described the potential impact of climate - related issues on their businesses. prudential regulation authority. ( oct 2018 ). consultation paper on enhancing banks ’ and insurers ’ approaches to managing the financial risks from climate change. available : https : / / www. bankofengland. co. uk / prudential - regulation / publication / 2018 / enhancingbanks - and - insurers - approaches - to - managing - the - financial - risks - from - climate - change. prudential regulation authority. ( march 2019 ). pra and fca ’ s joint climate financial risk forum. available : https : / / www. bankofengland. co. uk / news / 2019 / march / first - meeting - of - the - pra - and - fca - joint - climate - financial - risk - forum. forthcoming april 2019 as described in tcfd september 2018 report : these companies disclose the inputs to and

and equity prices ", 31 may 2007. that said, the assets held by sovereign wealth funds are highly concentrated, with around 70 % of total assets held by the five largest funds. so the largest sovereign wealth funds could have an impact on some markets especially smaller ones such as other emes. also, a number of central banks from countries with large current account deficits have been willing throughout the current liquidity crisis to lend to international banks, including uk ones, at longer, three - to - twelve month, maturities. market for public debt securities is only 3. 3 % of the global market, uk equities account for 7½ % of the value of global equities. the rapid growth in sovereign wealth funds is also a fillip for london as a leading international financial centre. swfs and transparency the main doubts concern their objectives and how far their investments will be driven only by financial returns. public sector owners might have other objectives including national political interests, such as, accessing military technology, controlling strategic resources or markets, and influencing public opinion. 9 there are often complaints that sovereign wealth funds lack transparency. decoded, this is a request for reassurance about their investment policies. i am certainly not going to argue against more transparency ( except in the very special case of the market operations of central banks ). more openness from swfs may help to alleviate concerns in recipient countries – and thus reduce protectionist pressures. and it may improve the dissemination of information to market participants and to their own citizens. i know many swfs are working with the imf to produce a voluntary code of conduct that is based on best practices for the governance and transparency of sovereign wealth funds. for example, it would be helpful if all sovereign wealth funds were transparent about their overall strategies, objectives and broad investment guidelines. norway ’ s government pension fund is a good example in this respect. but there should be a level playing field applied to all investors. the case for greater transparency applies to other investors too. swfs may take some comfort that they are not being singled out and that there are equally powerful pressures for transparency on hedge funds and private equity investors. in this respect, two recent initiatives are particularly welcome. first, a report under the chairmanship of sir andrew large – my predecessor as deputy governor for financial stability at the bank – on voluntary standards, including on disclosure, for hedge funds. and, second, a report by sir david walker – a former executive director of the