available on the ecb banking supervision website. 7 ngfs ( 2020 ), guide for supervisors – integrating climate - related and environmental risks into prudential supervision, may. 8 see footnote 5. 9 de nederlandsche bank recently examined the material exposures of dutch financial institutions to risks stemming from biodiversity loss. according to its report, dutch financial institutions have provided €510 billion in finance worldwide to companies that are highly dependent on ecosystem services, with €28 billion exposed to products that depend on pollination alone. de nederlandsche bank ( 2020 ), “ indebted to nature – exploring biodiversity risks for the dutch financial sector ”, june. 10 three weeks ago, the ngfs, together with the international network for sustainable financial policy insights, research, and exchange ( inspire ), announced a joint study group on biodiversity and financial stability 5 / 5 bis central bankers'speeches

##ting from climate change, our sole aim is to live up to our mandate. there is a knock - on effect of doing so, however, but it is a welcome one. by compelling banks to adequately assess and manage climate - related risks, we are, in effect, safeguarding the financing of the transition to a low - carbon economy as well. if banks proactively manage climaterelated risks, they will not be blindsided by stranded assets, meaning that capital will be preserved and can be used to finance investments in the low - carbon transformation. and climate - related risks being adequately represented on banks ’ balance sheets will contribute to these risks being appropriately priced. so if ecb banking supervision recognises the financial risks emanating from climate change, this will have a dual effect – it will compel banks to take these risks into account, which in turn will induce companies and households to factor them in as well. this alone will not fully internalise the damage caused by greenhouse gas emissions ; other institutions are in charge of making sure of that. but it is an important piece of the puzzle. the urgency to act – climate change is irreversible the eu has committed to becoming carbon - neutral by 2050. the change that our economies need to undertake must be structural. we must reduce the use of fossil fuels as quickly as possible and move towards greener infrastructure that can support the global economy in a way that is sustainable and that protects our planet ’ s ecosystems and biodiversity. 1 / 5 bis central bankers'speeches much has been made of the dip in carbon emissions that resulted from the economic shutdown in 2020 in many countries. but to reach the paris target, every single year we need reductions in emissions that are greater than last year ’ s, and we need to bring about these reductions by ramping up the use of clean technologies, not by shutting down our economies. unfortunately, even the too - small drop in emissions we saw last year seems set to be all but reversed in 2021. the international energy agency expects to see the second - biggest increase in carbon emissions in history this year, eradicating 80 % of the 2020 reductions. 2 the good news is that 2021 may also provide just the kind of momentum we need to tackle climate change effectively. as the european union and national governments start making large investments to pave the way for recovery, it is crucial that those funds are channelled towards activities that support our transition to a greener economy. i will now