integrate climate and nature - related risks into their strategy, governance and risk management. it is very much consistent with the general supervisory principles that have been established by the bcbs. since the ecb first started discussing climate and nature - related risks with banks back in 2019, progress has undoubtedly been made. banks have taken steps to integrate these risks into their strategy, governance and risk management. although at present none of the banks under our supervision fully meets all our expectations, each of our expectations has already been fulfilled by at least one bank. it shows that progress is possible, and that it is not just taking place among a few banks, but across the board. this is good news, since we expect all banks under our supervision to be fully aligned with our supervisory expectations by the end of 2024. we will enforce this final deadline as well as several interim deadlines. in fact, a number of banks under our supervision have already received binding requirements to remedy shortcomings by a certain date. if they do not comply, they will have to pay a penalty for every day that the shortcomings remain unresolved. building on the results achieved and progress made, earlier this year the ecb announced a new climate and nature action plan. it sets out concrete steps to consider how, within our mandate, we can further support the green transition, assess the 3 / 4 bis - central bankers'speeches physical impacts of climate change and explore the materiality of nature - related risks. moreover, when we completed a review of our operational framework for implementing monetary policy two weeks ago, we announced that climate change - related considerations will be incorporated into the design of future structural monetary policy operations. conclusion let me conclude. the amazon river is subject to the " pororoca ", one of the largest tidal bores in the world. it is an enormous wave travelling from the mouth of the amazon on the atlantic coast up to 800 kilometres upstream. the climate and nature crises are unfolding. together they are overflowing the economy and the financial system, very much like the " pororoca " overflows the amazon basin. even if mitigation and adaptation measures are taken, one thing is certain : the world, the global economy and the financial system will see profound change. in the words of brazilian author paulo coelho : " you drown not from plunging into the water, but from staying submerged in it. " emerging from the climate and nature crises requires action from all authorities within their mandate

incorporate climaterelated financial risks into the basel framework for the global prudential regulation of banks. and progress has been made across all three pillars of the prudential framework : regulation, supervision and disclosures. on the topic of disclosures, late last year the bcbs issued a consultation paper on a proposed climate - related disclosure requirements framework, building on the work done in various other fora. the deadline for comments was two weeks ago and we are now carefully assessing the feedback received. meanwhile, there is also progress on nature - related risks. in view of the brazilian g20 presidency's priority to deepen work on sustainability - related risk, the financial stability board ( fsb ) will this year complement its climate - related work with a stocktake of 2 / 4 bis - central bankers'speeches current and planned regulatory and supervisory initiatives regarding nature - related financial risks. this may build on the work already done by the central banks and supervisors network for greening the financial system ( ngfs ). last year the ngfs – which has 138 members worldwide, including the banco central do brasil – published a conceptual framework to guide action by central banks and supervisors in the area of nature - related risks. the work currently being done by the bcbs, the fsb and the ngfs will ultimately find its way to other international standard - setting bodies and translate into concrete practices by individual central banks and supervisors. ecb measures to take climate and nature into account let me give you some examples of actions we have taken at the ecb. in 2021 we unveiled an ambitious climate action plan covering macroeconomic modelling, financial stability monitoring, data collection, risk assessment capabilities and our monetary policy operations. many of the actions we planned have now been delivered. for instance, we have made significant progress in improving the models that we use in macroeconomic analysis supporting our monetary policy decisions. moreover, we have in place a methodology to tilt the purchase of corporate bonds towards issuers with a better climate performance – if we ever need to buy corporate bonds again in the future. in the collateral framework for our lending operations, we only accept assets that comply with the relevant sustainability reporting requirements and we are looking at setting limits on the share of assets issued by entities with a large carbon footprint. in the area of banking supervision, we have urged banks to ensure the sound management of climate and nature - related risks, using the supervisory expectations we published in 2020 as a starting point. these expectations give guidance on how banks should