denis beau : emerging supervisory priorities - technology, risk culture and sustainability opening remarks by mr denis beau, first deputy governor of the bank of france, at the bcbsbscee - fsi high - level meeting for europe on banking supervision, session : “ emerging supervisory priorities : technology, risk culture and sustainability ”, vienna, 21 may 2019. * * * accompanying slides of the speech. along with some other national central banks, in particular the bank of england and the dutch national bank, the banque de france ant its supervisory arm, the acpr has started to work on sustainability risks since 2015, in particular on financial risks arising from climate change. this willingness to take ownership of this issue was linked with the requirement from the french energy transition act of 2015 to prepare a report discussing the feasibility of stress - testing exercises focusing on climate change - related risks, though the scope of the report was finally broader as it discussed the relevance of these risks for french banks. our conclusions, published in march 2017, were that climate - related risks, in particular transition risks in the case of french banks, were relevant for financial stability, although the horizon of materialization was perceived way beyond the one underlying most of the risks we currently supervise and horizon of decision of banks. from this point of view, it was deemed within the mandate of the supervisor to raise awareness and enhance ownership of these potential risks throughout the banking sector via regular meetings with institutions. it also emphasized the need to collectively think how, as a supervisor and a central bank, we should deal with risks and avoid the build - up of new vulnerabilities ( e. g. helping to enhance the financing shift towards low - carbon sectors ). those reflections gave birth to the network for greening the financial system in december 2017. as a continuation of this work and also in the spirit of bringing our contribution to the reflections of the ngfs, the acpr surveyed both main french banking and insurance companies in 2018 to take stock of progress they have achieved in dealing with climate change - related financial risks. the main takeaways from both surveys have been published last april 10th 2018 in two reports1. the report dedicated to the banking sector2 includes three main observations : there is a shift in the governance of climate change - related risks from a “ coporate and social responsability - only ” perspective towards a two - pronged approach which integrates traditional risk departments. this trend is nevertheless mainly observable in the biggest and

in the position to adopt resulting guidelines or requirements ( in the eba case ). nevertheless, at a moment where networks or work streams are burgeoning, especially within european institutions, we should be very careful about the good coordination of these different initiatives to avoid redundancy and duplication. it is also important that the nfgs, which remains a club of the willing, ensure some minimal degree of cooperation and harmonization by issuing high - level recommendations. from this point of view, i welcome the six very important recommendation issued in april directed to supervisors, central banks and the financial sector : i ) integrating climate - related risks into financial stability monitoring and supervision ; ii ) integrating sustainability factors into own - portfolio management ; iii ) bridging the data gaps ; iv ) building awareness and intellectual capacity and encouraging technical assistance and knowledge sharing ; achieving robust and intentionally consistent climate and environment related disclosure ; vi ) supporting the development of a taxonomy of economic activities. in the longer - run, when there will be a global convergence about the necessity to issue global standards and regulatory requirements, global standard setter such as the bcbs and fsb would need to take the lead on addressing climate change - related risks. 12 1 main findings : climate change : which risks for banks and insurers? acpr. banquefrance. fr / sites / default / files / medias / documents / as _ cover _ note _ en. pdf analysis and synthesis no. 102 : “ french insurers facing climate change risks ” april 2019 acpr. banquefrance. fr / sites / default / files / medias / documents / as _ 102 _ climate _ change _ insurers _ en. pdf 2 analysis and synthesis no. 101, “ french banking groups facing climate change - related risks ”, april 2019acpr. banque - france. fr / sites / default / files / medias / documents / as _ 101 _ climate _ risk _ banks _ en. pdf 2 / 2 bis central bankers'speeches