##0. www. mercer. com / insights / point / 2014 / climate - change - scenarios - implications - for - strategic - asset - allocation. html see the task force on climate - related financial disclosures “ phase 1 report and public consultation ” available at www. fsb - tcfd. org / phase1report / bis central bankers ’ speeches evaluating mechanisms for consistent, transparent dispute resolution processes. • we all know the paradox that, as climate risks are a function of cumulative emissions, earlier action will mean less costly adjustment. better climate disclosure and an effective green bond market will mean more investment with foresight and less regret in hindsight. ( iii ) inclusive inclusiveness is at the heart of the sdgs, and it must be at the heart of financial reform. however, recent years have seen a worrying decline in correspondent banking services, with local banks and money service businesses in numerous regions losing access to the global banking system. 12 the impact, in terms of unfulfilled economic potential, lost access to finance, and the break on sustainable development, is more than financial. financial abandonment also has social, economic and security consequences. communities that become financially excluded become vulnerable, particularly where lost banking services cut off income flows from remittances. our shared challenge is to combat money laundering and terrorist financing while reversing financial abandonment. these aims are entirely compatible. keeping flows inside the financial system, and subject to stringent due diligence against clearly articulated standards, rather than forcing them underground is the way to ensure that the financial sector continues to serve real economies around the world. to this end, the fsb, the world bank and the imf are implementing the four - point action plan endorsed by g20 leaders. it is : assessing the dimensions and implications of the issue ; clarifying regulatory expectations by working with the fatf and relevant countries ; expanding capacity through technical assistance in those jurisdictions whose firms have lost correspondent banking services ; and strengthening tools for due diligence by correspondent banks. these efforts to reverse financial exclusion from the global system from termination of correspondent banking relationships can be complemented by greater use of financial technology to promote inclusion. over the past decade, mobile and web - based payment providers have dramatically expanded access to payment services, particularly in developing countries. consider vodafone ’ s m - pesa since its launch in 2007. it has reached 23. 4m customers across 11 countries, many of whom do not have bank accounts. 13

to review our forecasts. conclusion so, in summary there is no shortage of interesting issues to ponder over as we think about the future. the world economy is undergoing fundamental change as the weight of economic activity moves from the north atlantic economies to asia, and as the household sectors of many countries re - think their attitudes to spending and borrowing. these are important structural changes that are likely to shape the australian and the global economies over coming years. i wish you luck in incorporating these changes into your central forecasts and into the risks around those forecasts! thank you for your attention this evening and i wish you all the best for 2011.