Adrian Orr: A near horizon - seizing the opportunities and managing the risks in the transition to net zero - the importance of climate-related financial disclosures
Remarks by Mr Adrian Orr, Governor of the Reserve Bank of New Zealand, delivered to a virtual roundtable, 28 May 2020.
Talofa lava, tēnā koutou katoa, welcome everyone
Thank you to the organisers - McGuinness Institute, Simpson Grierson, and the Climate Disclosure Standards Board - for gathering us all for this important discussion.
Thank you also to Mr Mark Carney. I want to acknowledge your role in shifting the global financial system to a more sustainable perspective. You shook us awake with your 'Breaking the Tragedy of the Horizons' speech in 2015. Now, only five years on from your speech, a common topic across central banks and financial regulators more broadly is how can we best assess and address climate risks.
I also acknowledge the Climate Change Minister, James Shaw, and his personal commitment, financial expertise and leadership on this very important issue.
Today I will speak briefly to three points:
- Why climate matters to New Zealand's financial stability;
- The Reserve Bank's climate strategy; and
- The impact of COVID-19 in terms of risks and current opportunities.