The governor of the Bank of Finland says central banks will need to persuade commercial banks to adjust their balance sheets to support a transition towards a more “sustainable economy”.

Climate change, Olli Rehn said, was one of the largest risks to the financial system moving forward and regulators need to start to “take action”.

“Since climate change knows no borders, global efforts are needed,” he said, “first, on getting financial institutions to manage their own climate change-related