• The Reserve Bank of New Zealand is collaborating with more than 110 other central banks.
• They want to better understand and address climate change.
• Adrian Orr, governor of New Zealand’s central bank, states.

The Reserve Bank of New Zealand is collaborating with more than 110 other central banks to better understand and address climate change, according to Adrian Orr, governor of New Zealand’s central bank.

“Well-being and prosperity suffer as the environment continues to change. It’s crucial that we comprehend this backdrop in order to fulfil the Reserve Bank’s mission, Orr said on Monday during a speech at a conference on climate change and business.

According to Orr, it is preferable to maintain financial stability when all pertinent risks are recognised, valued, and distributed to those who are most suited to manage them.

“Climate consequences are already present, and there will always be a possibility of additional impacts. However, we still have a lot of power,” Orr remarked.

It was crucial for the central bank to consider the “present and future implications of climate change” as part of its duty to preserve financial stability, according to Orr, who said that there had been “no shortage” of recent extreme weather events linked to climate change around the world.

Orr made his comments after Graeme Wheeler, his predecessor, criticised the governor of the central bank earlier this year for focusing on the “extraneous political problem” of climate change during his tenure.

Around 200 of New Zealand’s largest financial institutions will be required to publish their emissions and submit yearly reports on the risks that climate change poses to their industry starting in 2019 as a result of groundbreaking legislation passed last October.

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