The Bank of England says climate climate and nature risks, says senior former employees

The Senior Bank of England bank employees who resigned from the risk supervision roles in climate and nature have complained that the Central Bank neglected the issues, leaving the financial sector in the United Kingdom is not ready.

Six people left Bi Between 2020 and last year the Financial Times had told the climate change had been neglected during the reign of ruler Andrew Billy. Some have said that he converted the Foundation’s focus away from the risks that were seen as “soft” and difficult to determine.

Senior managers have not been enabled to take the climate risk seriously as part of the prevailing supervision work since Billy took over Mark Carne, and the former employees, some of whom left as part of job progress and others because they felt frustrated by the England Bank’s approach.

“Self -censorship and leaving were a frequent pattern,” said one of the former employees of his experience in Billy.

Another former employee said: “The biggest risk facing the financial system … It is from climate Environmental risks. . . I just felt that what the bank is doing to treat these things was not enough. “

As the ruler of the Bank of England between 2013 and 2020, Carney was one of the first central bankers to highlight the challenge represented by the high temperatures to financial stability, warning 10 years before.Horizon tragedy“Landers and insurance companies failed in the price.

But the debate about the extent to which central banks should intervene to reduce climate risk on the financial system in recent years, especially since the shift against climate work during the era of US President Donald Trump.

Last month, Sarah Braidin, Deputy Governor of Financial Stability, said the Bank of England You should remain in the “swimming neighbor” When dealing with financial risks of climate change.

“It is important not to defend a specific political trend; we only refer to the risks,” said one of the senior officials of the Bank of England.

Climate change in a list of four goals of the critical government policy BiThe Capital Policy Committee was assigned to support, in addition to its primary goal of protecting financial stability, until 2023, when Jeremy Hunt, the advisor at the time, removed it at the time.

to request About change By a parliamentary committee in February last year, Billy said: “There are the risks of financial stability (from climate change). We did not ignore it.” But he added: “The depth of the work we do somewhat will be cut off.”

England’s executive officials have recently made letters of the importance of analyzing and managing climate risk of monetary policy and the flexibility of the city of London. A senior official said that it is now “in the middle of the package”, with the European Central Bank “in the lead” and the American federal reserve “behind.”

But the former employees said that they are afraid that the change in priority may have caused the ability to model technical risk in England from the lack of private sector, even though. The effects of climate change In the United Kingdom, it intensified.

Many former employees said that the proposed improvements to overseeing banks and insurance companies have sometimes decreased for capacity. One of them said: “I felt very frustrated because we were unable to review the risks we needed to do to understand what was happening in these companies.”

A person who works on climate risk for insurance companies said that working hours in this field have been cut by about a third between 2022 and 2024.

Four former employees also said that the risk of nature – for example from the collapse of vaccination or the extinction of species – was a special blind point.

The Bank of England chose last year not to put its name at a green financial institute paper People familiar with the matter said, I have worked on that which has found great success to the GDP in the UK from the risks of nature could be greater than the global financial crisis or Covid-19.

“While the government is responsible for the climate policy, the climate risk that threatens our goals is part of the bank aircraft, and we are working to take action accordingly,” said Bank of England.

The European Central Bank and other central banks, including the monetary authority in Singapore, have taken care over time with more attention to how financial institutions deal with the failure to pay the mortgage, insurance and economic defuse associated with material risks and those that arise from government policies to reduce emissions.

But there is still a discussion between the forecasters, the financiers and the organizers about the extent of the system of these risks for financing. “For a variety of financial group, it’s gravel,” said one of the former England Bank employees now at an insurance company. “Most people (in financing) do not give monkeys of climate change.”

A person familiar with the work of the current England Bank said that the climate and nature have become less than a priority because of this position. They added: “There are many catastrophic things for humanity without being disastrous for financing.”

However, a senior England Bank official said that there is less need to oversee climate risk because the banks under their observation have already accepted seriousness.

The only climate stress test at the Bank of England, which was conducted in 2021-22, expected that its average ranges by 10 percent to 15 percent of “clouds” from climate change for banks and insurance companies.

But the scenarios that support the analysis of the climatic risk of central banks have not always been determined. The most intense Possible results, “said England Bank employees last year.

The central bank test was intended to happen every two years, but it was not repeated. “They need to invest in the right experience,” said Nitika Aguar, head of sustainable finance at the UK branch at the Global Fund for Nature.

The Charity Organization Authority in the Puritanous Flaczing Council and the Financial Conduct Authority has established a climate financial risks forum for industry and organizers, which published a guide On the risks of nature last October.

The Central Bank assesses the importance of the financial risks related to nature on the goal of financial stability, as it also consults Updated supervision forecasts For banks and climate insurance companies, which would require them to repair “gaps” in how to address climate change risks.

Morgan Debbser, former head of strategy in Bank de France, said this may indicate a renewed enthusiasm for climate work. But he added that the Bank of England in recent years has had “a feeling of caution, be careful, called it whatever you want. The climate is no longer important anymore.”