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Look, I think the good news is this - elements of the system are coming into place - disclosure, reporting at the heart, better understanding on risk management, elements of markets, that we need new markets, like offsets and others, but also net-zero plans, not just for companies, but for financial institutions. However, the question then becomes about execution and assessment of that execution. And that's where the strength of the market comes into play.
And like any big movement, any big secular trend, there is good and bad. There's people who can execute and those who can't. And it's the job of the market and the job of broader stakeholders to make those judgments with that information. And some will fall short. That's absolutely right. But that's the sifting that happens in the market. And the good will be back with capital, and the bad will be shunned. And that's how we can make progress.
The day that Greta Thunberg made her speech at the UN - the 'How Dare You' speech - I spoke shortly afterwards. Funnily enough, she got more attention, I think. Rightly enough, she got more attention. But one of the three points that I made were exactly those, about the green taxonomy, which is that - good idea, but the execution is crucial. We need 50 shades of green. We need that range of greens in order - and you've written about this, I know - in order to encourage the transition. The point is to take things from brown all towards green, and get them there.
Now, I think there is a rethink going on about the taxonomy. There's an opportunity as well, as in many things, with the US coming squarely into this climate discussion and setting up this framework. And we should grasp it in order to get a truly effective taxonomy.
They're on the cusp of having the core of the financial system made commitments to net zero. Not just distant 2050 plans, but more near-term plans, and with greater transparency. It's important we get that right. But it's also important that we don't just have the words, but we have the high-enough ambition that stretches from those asset owners that I just mentioned through asset management - banks, market infrastructure, insurers, and others. And that's one of the key objectives for Glasgow.
