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

kevin m warsh : longer days, fewer weekends speech by mr kevin m warsh, member of the board of governors of the us federal reserve system, at the 12th annual international banking conference, chicago, illinois, 25 september 2009. * * * recent media stories and more substantial works chronicle in great detail the events of the past couple of years. 1 a pair of conclusions might be fairly drawn from these early drafts of history. one, the financial market turmoil of the past year proved to be of significant consequence to the economy. and two, the federal reserve distinguished itself from historical analogues by taking extraordinary actions to address risks to the economy. the commentary, however, tends to part ways as to whether the extraordinary actions undertaken were to the good or the detriment of the u. s. economy in the long - run. as my fellow members of the federal open market committee ( fomc ) and i stated earlier this week, economic activity has picked up, conditions in financial markets have improved further, and longer - term inflation expectations are stable. nonetheless, the second anniversary of the onset of the financial crisis – and about a year from the darkest days of the panic of 2008 – is no time to declare victory, scarcely the moment to hand out medals. 2 i cannot help but think of the strong but weary athlete who, after a morning swim, embarks upon a grueling cycling contest to a rising din of cheers and a smattering of boos … only to be reminded that he is participating in a triathlon, and that he has a long run still before him. in my view, it is unwise to prejudge the fed's policy strategy – or to declare the victor or the vanquished – by the split time, however notable it might be. we are at a critical transition period, of still unknown duration, and we must prepare diligently for an uneven road race ahead. if policy is not implemented with skill and force and some sense of proportionality, the success of the overall endeavor could suffer. judgments made by policymakers in the current period are likely to be as consequential as any made in the depths of the panic. that means policymakers should continue to communicate as clearly as possible the guideposts, conditions and means by which extraordinary monetary accommodation will be unwound, including the removal of excess bank reserves. 3 it also means that policymakers should acknowledge the heightened costs of policy error. the stakes are