it is also continuing to work on data requirements and gaps that are crucial for assessing the financial stability risks posed by climate change. the fsb will report to the g20 on both issues in july. in the meantime, the international financial reporting standards foundation is moving ahead with a proposal to set up an international sustainability standards board to deliver the first consistent, single set of global norms for climate - related company disclosures. the foundation ’ s proposals have received widespread support from, among others, the international organization of securities commissions. at the same time, it is essential that the ifrs work does not fall short of current investors ’ need and international best practices. in that context, the foundation ’ s work can take inspiration from and should leave sufficient room for the european commission ’ s proposal for a corporate sustainability reporting directive. the commission ’ s proposal includes transposition of the directive into national law by eu member states by december 2022 to ensure it is applicable for the fiscal year beginning 1 january 2023. with all these activities and numerous initiatives from non - governmental organisations [ 5 ], the green finance landscape is quickly becoming crowded. as everyone has a vital role to play in addressing the climate crisis, this is clearly a welcome development. yet it also requires enhanced coordination among different stakeholders : first, to ensure that ongoing work can build on work being carried out elsewhere without anyone having to reinvent the wheel ; second, to ensure that workstreams are sufficiently complementary ; and third, to identify potential perspectives that are being left unaddressed – blind spots from which a green swan could emerge. following this conference and the g20 meeting in july, the cop26 summit taking place in glasgow in november will be a key event for taking stock of the many initiatives currently under way. it will also be an important milestone for assessing the progress being made to meet the objectives of the paris agreement and a catalyst for accelerating the actions required to ensure the commitments made are kept within reach. role of central banks and supervisors in this crowded field, central banks and supervisors are also increasingly showing their resolve and dedication to contribute within their mandate to integrating the effects of the climate crisis in the exercise of their tasks. they have done so individually, but also collectively as part of the network for greening the financial system ( ngfs ) which i have been proudly chairing since its inception in december 2017. back then, the eight founding members represented 30 % of global economic activity. now, the ngfs has evolved into a network of

. more recently, the german constitutional court issued a ruling that in essence held that the german federal climate change act did not go far enough. 12. recently, the non - governmental organisation clientearth filed a claim against the national bank of belgium. 13. in his speech on the tragedy of the horizon, mark carney already referred to liability risks for financial stability in addition to physical and transition risks ( see reference in footnote 4 ). 14. in november last year the ecb published its guide on climate - related and environmental risks. building on the guide for supervisors of the ngfs, it communicates the ecb ’ s understanding of a prudent approach to managing such risks to banks, markets and the wider public, with the aim of raising banks ’ awareness and preparedness for managing them. the guide outlines, the ecb ’ s supervisory expectations for how climate and environmental risks should be embedded in all relevant bank processes, from banks ’ risk management frameworks to their governance structures, risk appetite, business model and strategy, and, importantly, their reporting and disclosures. 15. recently, a task force on climate - related financial risks that operates under the basel committee on banking supervision looked into the effects of physical and transition risks on banks. this task force concluded that climate - related risks can be captured in risk categories that are already used by financial institutions and reflected in the basel framework, for example credit risk, market risk, liquidity risk and operational risk. however, the task force also concluded that we still need an enhanced toolbox that can better measure climate risks. 16. see ngfs ( 2021 ), “ adapting central bank operations to a hotter world : reviewing some options ”, ngfs technical document, march. contact european central bank directorate general communications sonnemannstrasse 20 60314 frankfurt am main, germany media @ ecb. europa. eu + 49 69 1344 7455 reproduction is permitted provided that the source is acknowledged. media contacts copyright 2021, european central bank