LONDON (Reuters) – France’s central bank governor François Villeroy de Galhau has pushed back against recent criticism of central banks’ increasing involvement in the fight against climate change, calling it a “must have” focus.
“Climate-related risks are clearly among the long-term risks to which financial institutions are exposed: monitoring these risks is not a ‘nice to have’, or part of a CSR policy, but a ‘must have’,” Villeroy, who also sits on the European Central Bank’s Governing Council, said in a speech at the City Week conference in London.
On some of the recent push back against central banks’ increased role, he added central bankers shouldn’t waste too much time on the legal and political debate about central bank mandates.
“Central banks’ core mandate worldwide is price stability, and climate change already affects the level of prices and activity.”
“It’s not mission creep, it’s not a politicisation of our mandate – it is our core business and core duty.”
(Reporting by Marc Jones; Editing by Hugh Lawson)
