to promote its transformation. there is certainly much to be done. but, to conclude on a positive note, i wanted to highlight the incredible pace at which initiatives are moving and changes are being introduced. let me give you two examples. first, the ngfs was created barely two years ago, but in this very short lifespan it has managed to publish two comprehensive reports, guidance for central banks ’ investments and, not least, its membership has surged from 8 to 51 members and 12 observers. the second example is rather obvious : just look at the composition and topics discussed on this panel today. they would have been quite unthinkable two years ago. thank you very much. 5 / 5

and drive its movement gradually if we wish to minimise any undesirable economic and social consequences. the goal is to achieve what has been dubbed “ a fair transition ”. let me talk now about the supervisor ’ s side. what are we expecting from banks in relation to these risks? well, in the short and medium term we would expect all banks to include the environmental dimension in their strategic approach, as well as in their risk analysis and monitoring. banks must begin to fill data gaps, compiling all relevant information at least for new operations. from a methodological standpoint, banks should at least be able to understand the implications of environmental risk and how it may affect their business models, including it in their risk appetite frameworks, in a manner proportionate to their size and complexity. of course, the board has to be duly informed, and some of their members should have the necessary expertise to assess these risks. needless to say, it is not only banks that need to “ catch up ” ; we are also working at the banco de espana to adapt to this reality. i believe it is fair to acknowledge that this is all very new for everyone in the banking sector, including certainly central banks and supervisors. what are we doing? firstly, we have created an internal function entrusted with assessing the impact we as an institution have on the environment. the aim is to identify and coordinate the necessary measures to reduce that impact. secondly, as a macroprudential supervisor, we clearly need to be able to assess and quantify the risks that the transition towards a more sustainable economy poses, both for individual banks and the financial sector as a whole. we must be able to perform stress tests for the financial system overall and define scenarios to be applied by banks individually. 4 / 5 accordingly, we are designing internal governance structures and methodologies, actively participating in the cultural shift in the ssm supervisory model. naturally, we are also evaluating the information and data requirements needed to address this challenge. thirdly, as investors in the debt markets, we are working to include environmental risk assessment in our credit analysis. a fourth key element is our responsibility as supervisors. we must foster the implementation of these changes in the financial sector. we cannot wait for change to occur. we need to be proactive. accordingly, we are also launching several initiatives to help raise awareness of the importance of this issue, including workshops and meetings with the industry to learn more about how the sector is coping with climate change and