. 5 trillion in infrastructure investment alone every year for decades. 3 all forms of finance : public, private and blended finance will play a part. public finance to support a fair and inclusive transition across our economies. development and blended finance to support adaptation and resilience. and mainstream private finance to help all companies realign their business models for net zero. the objective for the private finance work for cop 26 is simple : ensure that every financial decision takes climate change into account. 1 the full list of current tcfd supporters is available at : https : / / www. fsb - tcfd. org / tcfd - supporters /. see https : / / www. unpri. org / signatories, http : / / www. climateaction100. org / investors, https : / / www. unepfi. org / net - zero - alliance /. https : / / www. iea. org / news / deep - energy - transformation - needed - by - 2050 - to - limit - rise - in - global - temperature. all speeches are available online at www. bankofengland. co. uk / news / speeches to do so, we will work with you – the private sector – to put in place the frameworks so that you can do what you do best – allocate capital to manage risks and seize opportunities across the economy. determining who ’ s ready for the transition and who ’ s not requires : 1. disclosure of climate financial risk to become comprehensive ; 2. climate risk management to be transformed ; and 3. investing for a net - zero world to go mainstream. on the road to glasgow, we will focus on the three rs : reporting ; risk management ; and return - to help unlock the private financial flows that are vital to the transition. this will support a wider shift to paris alignment and be underpinned by public finance efforts to deliver $ 100bn. to succeed we will need your support and your action. we will publish the strategy and how you can get involved when i formally assume my new roles, but following sir david ’ s lead, i wanted to offer you an exclusive preview today. reporting : improving the quantity and quality of climate - related disclosures by implementing a common framework built on tcfd an old adage is that which is measured can be managed. for cop 26 we want you to help refine and implement tcfd disclosure ; and we will work with

climate - and weather - related events that damage property and disrupt trade. transition risks result from the adjustment towards a lower - carbon economy. changes in policies, technologies and physical risks will prompt a reassessment of the value of a large range of assets as costs and opportunities become apparent. the longer meaningful adjustment is delayed, the more transition risks will rise. climate risks also have a number of distinctive elements, which, in combination, require a strategic approach. these include their : breadth, as climate risks affect multiple lines of business, sectors and geographies ; magnitude, as the full impacts of climate risks are large, potentially non - linear and irreversible ; foreseeable nature ; for example the oil and gas industry group convened by the world business council on sustainable development and the institute of international finance for banks. the other channel concerns liability risks. these stem from parties who have suffered loss from the effects of climate change seeking compensation from those they hold responsible. such claims could arise well into the future, as the science and evidence of climate change hardens, though some are already taking action against companies on the grounds of failure to disclose the risks posed to their business models by climate change. all speeches are available online at www. bankofengland. co. uk / publications / pages / speeches / default. aspx dependency on short - term actions given that the size of future impacts will, at least in part, be determined by the actions taken today ; and uncertain time horizon which may stretch beyond traditional business planning cycles. the nature of these risks means that the biggest challenge in climate risk management is in assessing the resilience of firms ’ strategies to transition risks. part of the genius of the private sector - led tcfd is its recognition that disclosure needs to go beyond the static to the strategic. markets need information to assess which companies can seize the opportunities in a low carbon economy and which are strategically resilient to the physical and transition risks associated with climate change. the bank of england has also become increasingly active in such assessments, consistent with our financial stability and prudential mandates. as the supervisor of the world ’ s fourth largest insurance industry, we know that general insurers and reinsurers are on the front line of managing the physical risks from climate change. insurers have responded by developing their modelling and forecasting capabilities, improving exposure management, and adapting coverage and pricing. 8 in the process, insurers have learned that yesterday ’