RBNZ backs Sustainable Finance Forum’s interim report

RBNZ backs Sustainable Finance Forum’s interim report | Insurance Business

RBNZ backs Sustainable Finance Forum’s interim report

The Reserve Bank of New Zealand (RBNZ) has expressed its support in Aotearoa Circle’s Sustainable Finance Forum (SFF)’s interim report that is calling for a sustainable finance system.

“Financing the Future” – which focuses on social, environmental, and economic wellbeing as well as protecting the country’s natural resources – is expected to provide recommendations to improve the current financial policy, regulatory, and market framework.

RBNZ Governor Adrian Orr said they believe climate change could lead to material economic and financial stability impacts, which is why they have worked with their international counterparts via the Network for Greening the Financial System (NGFS) and the Sustainable Insurance Forum to “strengthen the global response required to meet the goals of the Paris agreement.”

“Through this network, we are working with more than 45 other central banks and supervisors from countries responsible for half of the world’s greenhouse gas emissions to enhance our role in the greening of the financial system, and the managing of environment and climate related risks,” Orr explained.

Read more: Local government suggests “fundamental rethink” on climate risk frameworks

Orr also noted RBNZ’s Climate Change Strategy that was released last December, which aims to address climate change through its core responsibility.

“We affirmed our Climate Change Strategy last month through the purchase of US$100 million of green bonds via the Bank for International Settlements’ USD Green Bond Investment Pool - launched in response to the growing demand for climate-friendly investments among central banks,” he said.

“There is still a lot more work to be done, but we will be responding to the Sustainable Finance Forum’s call for leadership as we work alongside others in the finance sector towards a sustainable, productive and inclusive low carbon economy.”