##orini ( 2019 ), ‘ climate risk and prudential regulation '. network for greening the financial system ( 2020 ), climate change and monetary policy : initial takeaways. technical document. product - based exclusions of the united nations global compact. 27 we overweight those with the best esg profiles, based on an external provider ’ s ratings. 28 in 2019, after the esg strategy had been introduced, the carbon footprint of our equity portfolio dropped by 30 per cent compared with the previous year. we are committed to further improving the environmental footprint of our investments, by applying sustainability criteria to a larger section of our portfolio. the bank of italy discloses on a regular basis both its operational principles for esg investment, and the results in terms of its carbon footprint. we acknowledge that the current esg ratings are an imperfect measure of climate risk, and support the development of more consistent, comparable and forward - looking data and scores. 29 we also support research on sound climate - risk assessment methodologies ( such as scenario analysis, and stress testing for transition and physical risks ), participating in eurosystem - wide developments. president lagarde confirmed yesterday that the eurosystem, as part of its ongoing strategic review, is considering whether to consider climate change profiles in its operations. 30 we favour any progress towards enhanced international cooperation in climate matters among regulators, supervisors and standard - setters. the bank of italy is an active member of the network for greening the financial system. as this audience knows, the uk and italy share the responsibility of promoting international climate cooperation through the upcoming cop26. * * * the awareness is growing worldwide that, if the goal of keeping the warming of the planet within safe boundaries is to be achieved, urgent action is needed to accelerate the transition towards net - zero global emissions. every actor must play their part. markets have proved themselves ready to embrace green finance, given the right incentives. change cannot just be legislated into existence, but public policy has a key role, including providing a stable climate - friendly regulatory framework. financial authorities should promote the adoption of sound climate - risk assessment practices, and support the production of adequate data ; while staying within their mandates, they can significantly contribute to achieving the common goal. this is the agreement, approved in 2004, which establishes the principles that companies should follow in the areas of human rights, labour, environmental sustainability and measures to prevent corruption. companies in all sectors can adhere to this agreement,

, providing a safety net against negative shocks and complying with budgetary rules requires thorough and realistic modelling frameworks, some of which will be discussed tomorrow by professor voena, one of the keynote speakers. there is little doubt that the long - term transformation of our economic systems will depend on technological progress, and the way it unfolds. among the many challenges ahead of us, the recent advances in automation and digitalization will undoubtedly have an unprecedented impact on workers'prospects, overall welfare and inequality. in the past, labour market and political institutions were crucial in sharing the productivity gains among capital and labour, especially from post - world war ii to the early 1970s. more recently, automation has generated losers, especially among those whose productivity has not been enhanced by the interaction between technology and their skills. looking ahead, the impact of ai on workers'employment prospects may be different from what we have observed in the recent past, and even highly skilled workers may experience negative labour market outcomes. these concerns will be at the heart of professor acemoglu's keynote lecture today. i am not here to take a stance on all these issues, or more generally on the future of work. the real consequences of this new technological wave, however, are likely to challenge several aspects, not only of the labour market – such as the determination of 2 / 3 bis - central bankers'speeches wages and the rent - sharing between firms and workers – but also of the modern welfare state – such as unemployment insurance schemes. brand new policies and institutions will be key in fostering competition, in favouring a smooth transition and in enhancing inclusive growth ; minimum income schemes and training and lifelong learning programmes could be useful in supporting those workers most at risk of being displaced. the path ahead of us is not set in stone. actively investigating these policy tools and questioning received wisdom is of the utmost importance today. for young ( and less young ) researchers, like many of you here today, the challenge is to provide strong empirical and theoretical evidence to support and guide the upcoming policy decisions. for those who are in charge of implementing these policies, a closer look at the recent advancements in economics and social sciences would be beneficial. let me conclude by thanking the organizers for their hard work, the keynote speakers and the presenters for their valuable contributions, and each one of you for your presence here. i am sure there will be two very fruitful days of discussion for us all. 3 / 3 bis - central bankers'speeches