Absolutely, Governor.
Thank you, Chair.
We do have quite an extensive work program which aims, just as you suggest, to complement the work that's done by governments, but also by the private sector, in areas that you would think about. The physical risks are the ones that are most palpable for people, because when they live them they're affecting their daily lives, but clearly, those risks, including exposures of financial institutions to physical risk and the disruptions that we've seen to economic activity, are important for us to understand.
We're doing work as well on the risk of the transition. Transition to a low-carbon economy can change relative values of asset prices. It could change which sectors do better than others, and that can present risks to the financial system that we need to understand and get ready for. That's a perfect opportunity for us—we're not a bank regulator—to work with OSFI and our private sector partners on trying to understand how to get the right data and do the right analysis so that we are ready for that.
Then, of course, there's this understanding of how the macro economy is going to change. We tend to think about these risks or the transition as being only one-sided and kind of downside, but in fact there are lots of opportunities. Farmers, for example, can invest in big data. They're doing that to improve their crop yields while at the same time they reduce their fuel consumption.
These kinds of changes in the macro economy affect how monetary policy might work and where the jobs are going to be. Again, we need to work with our counterparts to understand those as well.
Finally, we have our own job to do with our own business in making sure that we work to have the carbon footprint that we're happy with. We're committed to doing that and, with that, building in the right amount of transparency over time.