Masayoshi Amamiya: Climate change and finance

Speech by Mr Masayoshi Amamiya, Deputy Governor of the Bank of Japan, at the Japan Society of Monetary Economics, Tokyo, 27 November 2022.

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

Introduction

It gives me great pleasure to have this opportunity to speak to you today at the Japan Society of Monetary Economics.

Today, I would like to talk about climate change and finance. Addressing climate change has become one of the most important policy issues both internationally and at home. In corporate activities as well, addressing environmental, social, and governance (ESG) issues, including climate change, is an important management issue. The world of finance is also taking steps to address climate change. When making investments and loans, financial institutions increasingly consider whether they contribute to addressing climate change. In addition to shareholders, a wide range of stakeholders, including non-profit organizations, are demanding that financial institutions take climate change issues into account.

Climate change and finance have become increasingly linked in recent years in both policy and practice. In my speech today, I would like to first consider the basic issues related to climate change and finance, and then provide an outline of the efforts and initiatives of private financial institutions and central banks around the world, including the Bank of Japan. Finally, I would like to talk about some of the related challenges in financial and economic analysis, with a sincere request to all researchers for further research development.