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Address climate risk, be able to absorb losses: Bank of England Governor

One of the clearest examples of a regulators’ intention to force action on climate-related financial risks and ensure entities have the capital resources to absorb their potential future losses from them, came from Bank of England Governor Andrew Bailey yesterday.

Speaking at COP26 in Glasgow, the Bank of England Governor laid out a shift in gears in domestic regulation in the UK for 2022, with climate risk a key focus.

The goal is to “ensure firms are identifying and addressing climate related financial risks.”

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