this environment, there remain several broad trends which will unfold and present opportunities which shanghai and singapore institutions can leverage together. 1 / 3 bis central bankers'speeches first, china ’ s future direction in financial sector deepening and liberalisation is clear. president xi jinping announced at the g20 summit last year that china would continue with efforts to make the rmb an international currency and further internationalize china ’ s financial sector. to support such efforts in shanghai, singapore financial institutions can partner the shanghai authorities and financial institutions to spearhead policy innovation supporting the liberalization agenda. for example, dbs participated in underwriting the pilot issuance of free trade zone ( ftz ) bonds by the shanghai municipal government last year, demonstrating how the complementarity of overseas networks that foreign banks provide can contribute to the internationalization of china ’ s capital markets. second, the belt and road initiative ( bri ) will remain a priority trans - national initiative in china. during the national people ’ s congress meetings last month, president xi suggested that the shanghai ftz could be a bridgehead for the bri, to help domestic companies channel investment overseas and set up a legal framework in line with international trade and investment rules. as a hub for trade and investment flows in southeast asia, singapore would be a natural partner to shanghai in realizing this vision to promote trade and investment flows between china and the asean region. 1 0 third, technology will continue to present benefits and opportunities to the financial sector. as leading fintech centres, there is great scope for shanghai and singapore to harness technology together in a purposeful way, while ensuring appropriate and responsive regulatory frameworks to safeguard against possible new risks. anchoring stability, leveraging opportunities shanghai and singapore can look forward to further strengthening collaboration and deepening mutual understanding in these as well as other areas. indeed, shanghai pudong development bank ( spdb )'s decision to establish its branch in singapore – the first for spdb outside china – is testament to the bank ’ s confidence in deepening shanghai - singapore ties. 12 so how do we leverage the strengthening ties and the positive developmental trajectory to benefit shanghai and singapore as regional financial centres? allow me to propose some suggestions, which i hope would lead to further discussion during the forum today. amidst the current focus on developing china ’ s onshore capital markets to support capital market liberalization and rmb internationalization, singapore and shanghai financial institutions can work together in developing appropriate risk management and hedging tools.

2024 if they wish to avoid being subject to sanctions. the role of supervisors in monitoring and assessing efforts to incorporate climate risk into the management of financial institutions will be strengthened by the revised capital requirements directive ( crd ) and the requirement for banks to develop prudential transition plans. the exact content of these plans is currently being defined by the eba and eiopa. they will have to reflect both transition and physical risks, and their robustness will be assessed by the supervisor. finally, the banque de france and the acpr continue to participate in both european and international efforts, particularly to take greater account of climaterelated risks in prudential regulations, still using a risk - based approach, and more generally to improve knowledge and understanding of nature - related risks. 3. services to the economy and support for businesses in 2019, the ngfs clearly stated that climate risks are above all a societal and human risk, but also a financial risk. " as central bankers and supervisors, we therefore have a duty to concern ourselves with climate change in order to perform our monetary and financial stability mandates " ( f. villeroy de galhau ). the increasing risks associated with climate change are creating major challenges even for businesses. as such, to round out france's ecological planning strategy, the ecological transition financing committee ( cfte ) has tasked the banque de france with " devising a national climate indicator for businesses ". the aim of the climate indicator project is to provide companies with a free assessment of their transition, their exposure to climate hazards and the extent to which they are incorporating climate issues. 6 [ slide 11 ] the climate indicator, which aims to cover all aspects of climate risk, is broken down into three dimensions : 4 / 6 bis - central bankers'speeches transition ( ict ), drawing on ademe's accelerate climate transition methodology ( act ), measures alignment with a low - carbon world. 7 it compares the business's greenhouse gas emissions trajectory, projected on the basis of tangible actions in its transition plan, with its baseline trajectory, built around its activity volumes and sector baselines. 8 physical risks ( icp ) predict future trends in various climate hazards ( heatwaves, precipitation, hail, fire, drought, snow / frost ) projected under the ipcc's ssp2 - 4. 5 scenario, in the geographical areas to which the business is exposed. maturity ( icm ) reflects a more qualitative assessment of the company and