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.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Central bank speech  | 
05 June 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.