transition to a sustainable economy. implementation of the european commission's action plan and renewed strategy on sustainable finance are of particular importance in this context. a key part 1 / 5 bis - central bankers'speeches of these plans is about identifying and disclosing climate risks, essentially seeking to provide a tool to ensure that in deciding on their investments, investors are able to see clearly both the risks and the impacts associated with their investment options. looking to the asset management sector, we have seen the implementation of some key legislative changes - notably, the implementation of the sfdr and taxonomy regulation. i think you would all agree that the timelines for these legislative obligations have been ambitious by design but perhaps sfdr has been the most ambitious. at their core, these legislative requirements are intended to provide increased transparency around esg characteristics and the integration of sustainability risks at a product and entity level via pre - contractual documentation disclosures, website disclosures, and periodic reporting disclosures. the joint committee of the european supervisory authorities ( esas ) were also mandated to develop regulatory technical standards ( rts ) which have become the level 2 regulation for these obligations. in our role at esma, we have helped shape and develop the organisation's ambitious agenda in this area. in february esma published a sustainable finance roadmap 2022 - 2024 which identifies three core priorities : 1. tackling greenwashing and promoting transparency ; 2. building the capacity of both national competent authorities and esma in the sustainable finance field ; and 3. monitoring, assessing and analysing esg markets and risks. in may, esma published a supervisory briefing on sustainability risks and disclosures in the area of investment management, which seeks to promote common supervisory practices and approaches to a number of sfdr and taxonomy - related disclosure requirements. this provides clear expectations in respect of sfdr disclosures. esma also plans to conduct a common supervisory action ( csa ) on sustainability risks and disclosures in 2023, and discussions regarding the scope and methodology of the csa are ongoing. we will hear more on esma's work in this area from antonino barattelli who i am very pleased could join us for today's event. we will of course, continue our active engagement in each of the esas, with other national supervisors and the european commission, as this critical work continues to evolve. domestic focus turning to the domestic outlook, the central bank last year established a dedicated climate change unit to drive forward our

axel a weber : banking regulation keynote speech by professor axel a weber, president of the deutsche bundesbank, at the 9th munich economic summit, munich, 30 april 2010. * 1. * * introduction ladies and gentlemen the financial crisis, though in its third year now, still presents us with a great many challenges. nevertheless, while the number of challenges has not decreased, their nature has changed. with the stabilisation of markets and the onset of recovery, the focus has shifted from managing the current crisis to preventing future crises. and a cornerstone of this attempt to create a more stable financial system is the reform of banking regulation. as the field of banking regulation is highly complex and involves a host of technical details, i will limit myself to a brief overview of the current state of the reform process, highlighting some critical points. however, i am sure that the ensuing panel discussion will provide us with an opportunity to elaborate on some of the more technical details. 2. micro - and macroprudential aspects of regulation any attempt to create a more stable financial system should begin with the individual bank – that is, on the microprudential level of regulation. the relevant regulatory framework on this level are the basel ii rules, which have been implemented by a large number of countries. as the crisis revealed some shortcomings of the basel ii framework, the g20 commissioned the financial stability board to work towards a reform of the current rules. a first set of relevant measures was published in the summer of 2009 as a direct reaction to the subprime crisis. among others, these measures include stricter capital requirements for market risk and securitisation as well as heightened risk management requirements. additional proposals were put forward in december 2009. aiming at enhancing the resilience of the banking sector, major elements of these proposals include a new liquidity standard as well as a revised definition of capital. in the course of the current year, the relevant measures will be calibrated on the basis of a comprehensive impact study and be finalised by the end of 2010. although the envisaged reforms will strengthen the existing rules, they will not change their underlying principles. in essence, the basel ii framework seeks to limit banks ’ risk - taking behaviour by making it more expensive and thus less attractive. against this backdrop, recent proposals to prohibit certain risky activities altogether pursue a more radical course. one fundamental problem of such an approach is that the complete prohibition of certain activities is a very far - reaching market