andreas dombret : the merits of and challenges for global cooperation speech by dr andreas dombret, member of the executive board of the deutsche bundesbank, at a reception to celebrate the 30th anniversary of the bundesbank's representative office, tokyo, 22 may 2017. * * * 1. introduction governor kuroda deputy governor nakaso ladies and gentlemen it is wonderful to be back in tokyo, this extraordinary city. i am happy to see so many of familiar faces and so many important stakeholders here with us today. tonight we are celebrating the 30th anniversary of the bundesbank ’ s representative office in tokyo. actually, we are ten days early : the representative office started its work on 1 june 1987. but what are ten days among friends? to mark the occasion, i would like to say a few words on the merits of global cooperation. 2. the merits of cooperation nowadays, international cooperation is under attack from nationalist, populist movements. their claim : we are better off on our own. and i must say that – from an economic point of view – some of the frustration is rational, since the advanced economies have been undergoing a substantial economic transformation due to trade and technological change, which always has both winners and losers. yet, i cannot agree with the conclusion that we should heavily limit or even withdraw from international trade and global cooperation. why, you may ask. the answer is simple : evolution. one of the key insights of the theory of evolution is " the survival of the fittest ". many people conclude from this that “ competition ” is what makes our species so successful. and while that is not wrong, it falls short of explaining why the human species is one of the most successful on earth – meaning that it has spread over most regions of the planet and massively increased in number ; because it is cooperation and the division of labour which make our species so successful. evolutionary biologists have shown that there are only a few species – between ten and twenty, depending on the exact definition – on the planet that are capable of cooperating in a complex manner. and these eusocial species, as they are labelled, are the most successful species on the planet. the fittest to survive will be those who can compete and cooperate. in other words : while competition within a species is important for progress, cooperation may be even more important. this is actually programmed into our dna. let me explain by giving an example. in two scientific studies, cap

. furthermore, we are embedding esg factors in the supervisory assessment framework that we use. and we are going to monitor the ambitions that financial institutions have signed on to in the climate commitment. if they fail to make sufficient progress, we will consider all tools in our toolbox, including, ultimately, enforcement measures. and we are not the only one stepping up the attention. the ecb has communicated deadlines 3 / 4 bis - central bankers'speeches for banks to meet all supervisory expectations. by the end of 2023, significant banks are expected to include climate and environmental risks in their governance, strategy and risk management. the ecb has communicated that it will perform targeted deep dives and onsite inspections. the basel committee will give more consideration to whether regulatory measures are needed to address climate risks in the prudential framework. the european banking authority is exploring how esg risks could be incorporated in the european prudential framework. as financial institutions, you play a crucial role in our societies. you play an important role in creating sustainable prosperity. so we need you to act urgently. the world needs your help in funding the transition to a carbon - neutral society that is in harmony with nature. and as a financial supervisor i say : we need you to manage your climate - and nature - related financial risks. they are often two sides of the same coin. because that's what the story of a desperate restaurant owner in greece is telling us. that's what the millions of people whose lives and livelihoods are at stake are telling us. that we have to fight climate change and environmental degradation. that we have to fight the risks they entail for our financial system, our economy and sustainable prosperity. and that, in that fight, we all have to do our part. for us as supervisor, this means keeping the risks in check, and thus safeguard the stability of the financial system. but ultimately, we will only succeed if we join forces – supervisors, governments, private parties and financial institutions. so let's check in today, and take up the task that lies before us – together. thank you. 4 / 4 bis - central bankers'speeches