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

gabriel makhlouf : opening remarks – “ enterprise financing and investment in ireland – tackling the challenges of covid - 19, digitalisation and climate change ” opening remarks by mr gabriel makhlouf, governor of the central bank of ireland, at the webinar “ enterprise financing and investment in ireland – tackling the challenges of covid - 19, digitalisation and climate change ”, jointly hosted by the central bank of ireland, economic & social research institute ( esri ) and european investment bank ( eib ) and held in partnership with the kemmy business school, university of limerick, 19 april 2021. * * * good afternoon, it is a pleasure to welcome you all to this webinar on enterprise financing and investment in ireland, with a particular focus on the challenges of covid - 19, digitalisation and climate change. we in the central bank are delighted to host this event with our colleagues from the economic and social research institute ( esri ), the european investment bank and the kemmy business school from the university of limerick. and i would like to thank all of our speakers today including minister for finance, pascal donohoe, minister of state for business, employment and retail, damien english, and christian kettel thomsen, vice - president of the european investment bank. an event like this highlights the wide range of actors and agencies that have an interest and a stake in the success and the resilience of the enterprise sector. indeed, our own presentation today is of work undertaken jointly with the esri, using data collected by the department of finance, highlighting just how important collaboration is in addressing the key problems facing our economies and our societies, and in navigating the uncertainty of the pandemic. the presentation of the eib and participation in our panel from a range of international institutions is also extremely welcome, allowing us to gain insights into the irish economy and wider issues facing the business sector from those observing from a distance. i would of course much prefer to meet you all in person, but nonetheless i am looking forward to our ‘ virtual ’ discussions. small and medium enterprises ( smes ) in ireland while our event today will touch on issues relating both to smes and larger corporate businesses, i will focus my remarks on the sme sector. we are all aware of the enormous impact covid - 19 has had on our societies and our economies. smes have certainly not been spared, particularly with many businesses having to close their