to shaping an organization ’ s culture. you can never take a step back and say, “ we ’ ve finished the culture project. well done! now it ’ s time to focus our efforts elsewhere. ” culture is constantly evolving, and therefore needs to be constantly nurtured. one of the most challenging elements is that there ’ s no clear benchmark for success. and sometimes your greatest strengths can become your blind spots. as an organization with a public mission and regulatory responsibilities, the fed needs to have a particular focus on compliance. but cultures with a heavy focus on compliance can breed a sense that individuals aren ’ t responsible for their actions. as a ceo, i ’ ve tackled these issues by focusing on principles and values rather than writing extensive policies that try to cover every potential decision. this puts a premium on individual accountability to do what ’ s right and creating an environment where everyone has the ability and responsibility to speak up. somewhat paradoxically, focusing on principled decision making and accountability, rather than relying exclusively on rules and policies, can be the most effective safeguard against wrongdoing and unethical behavior. what ’ s the way forward? creating a positive work culture is challenging and ongoing work. and there ’ s no silver bullet that can solve cultural problems overnight. in terms of how to move forward i ’ d like to make three brief points before i close : first, the fact that we ’ re all sitting here in this room is a very positive sign. that so many leaders from major firms are here today, engaged in these issues, is a symbol of how organizational culture is moving up the agenda. the second is that the banking standards board survey is a terrific tool for getting a snapshot of what your organization ’ s culture looks like and how it ’ s changing over time. it goes far beyond typical engagement questionnaires and provides powerful insights into the values of employees and the characteristics of an organization. 7 it ’ s impossible to make progress if you don ’ t have an accurate picture of your starting point. the third is that when it comes to culture, i encourage everyone to look beyond their own lens of expertise. the fed couldn ’ t do its work without the deep knowledge of economists, lawyers, and statisticians. but the solutions to challenges related to a firm ’ s culture are unlikely to be found if we keep our focus narrowly trained on our own specialties. we have so much to learn from experts in psychology, ethics, and management. 3

projects by incorporating climate change into its corporate bond purchases, collateral framework and risk management. see “ ecb takes further steps to incorporate climate change into its monetary policy operations ”, press release, ecb, 4 july 2022. in parallel, ecb banking supervision has placed climaterelated risks at the core of its activities, urging banks to improve how they manage and disclose climate and environmental risks in the light of the results of the ecb supervisory climate risk stress test. see “ banks must sharpen their focus on climate risk, ecb supervisory stress test shows ”, press release, ecb, 8 july 2022. 47. certain investments delivering eu public goods would be more effectively or efficiently provided at the eu level. there is a strong case to be made that investments in climate change mitigation and energy security fall into this category given the limited scope for individual action and the cross - border nature of the issue. panetta ( 2022 ), op. cit. 48. terzi. a ( 2022 ), “ growth for good ”, harvard university press. 49. stern, n. and lankes, h. p. ( 2022 ), “ collaborating and delivering on climate action through a climate club ”, london school of economics, october. 50. lagarde, c. ( 2021 ), “ charting a course for climate action ”, ecb blog, november. see also heemskerk, i., nerlich, c. and parker m. ( 2022 ), “ turning down the heat : how the green transition supports price stability ”, ecb blog, november. copyright 2022, european central bank