www. bankofengland. co. uk / news / speeches with an estimated us $ 90 trillion of infrastructure spending expected between 2015 and 2030, the right decisions now can make sure those investments are both financially rewarding and environmentally sustainable. there has been a recent surge of environmentally focused investment funds. in japan alone, esg assets quadrupled from 2016 to 2018 to reach $ 2 trillion. as the transition gains traction, it is likely that both esg and mainstream investors will increasingly focus on companies ’ strategic resilience to climate change. 12 95 % of users found tcfd information on strategic resilience useful, but three quarters want more information on the financial impacts. 13 this year ’ s report to the osaka g20 summit found that, while firms were starting to consider strategic resilience, only about 50 % systematically conducted scenario analysis and of those that did, two fifths did not disclose the information. 14 almost 80 % considered the assessment of strategic resilience somewhat or very difficult, identifying a lack of relevant and granular data, the difficulty in determining scenarios to use, and the quantification of climate risks and opportunities as the biggest hurdles. 15 this is not surprising – scenario analysis is a new and complex practice. and most of the off - the - shelf climate scenarios ( such as the iea and ipcc publications ) are intended for policy or research, not business analysis. improvements will be best achieved with collective force. for some companies, scenario analysis is already part of their business planning and risk management. the tcfd report provides case studies – from rio tinto to unilever to citi – and finds common characteristics of good scenario analysis : using multiple climate - related scenarios to assess strategic resilience describing assumptions and parameters specific to the company identifying potential impacts of climate - related risks or opportunities disclosing potential strategic resilience under different climate - related scenarios to develop leading practices, the tcfd has created a knowledge hub which provides guidance, research, tools, standards, frameworks and webinars. 16 the task force encourages companies to describe the characteristics of their strategies that allow them to adapt to climate - related changes materially affecting their business while maintaining operations and profitability and safeguarding people, assets, and overall reputation. the tcfd report identifies that investors are likely to need information on the range of scenarios considered by a company ; implications of each scenario for the business ; strategic options considered ; and the reasoning

on ending too big to fail on the global stage, and in the uk we have transformed the way that we regulate banks and how we set policy to deliver financial stability. but some of the benefits of these advances are being offset by a long tail of outrageous conduct cases. these are like salt rubbed into the wounds to public confidence in financial markets. this is in no one's interest. many leaders in the financial industry and the majority of those who work in these markets are ashamed of this bad behaviour and want to find a way to put it comprehensively behind them. the fines alone have been sufficiently large to require substantial reshaping of firms ’ businesses. i am confident we can find a way forward. i recall the story of when the queen visited the lse in november 2008 and asked the gathered assembly of eminent economists why had nobody noticed that a crisis was on its way? the reply came in the form of a letter from the british academy7. their bottom line was that the crisis was caused by “ a failure of the collective imagination of many bright people, both in this country and internationally to understand the risks to the system as a whole. ” this is a moment when we need collective imagination – to imagine financial markets that are fair and effective and work in the interests of all of us. http : / / www. britac. ac. uk / templates / asset - relay. cfm? frmassetfileid = 8285 bis central bankers ’ speeches figure 1 : global financial assets us $ trillions corporate bonds financial companies'bonds government bonds nominal world gdp figure 2 : market value of ficc derivatives contracts bis central bankers ’ speeches figure 3 : the review framework bis central bankers ’ speeches