The European Central Bank needs to take climate change into account when making decisions as it has a clear impact, especially on inflation, the chief of the European Central Bank said in an interview published on Thursday.

“If more and more climate disasters, droughts and famines occur throughout the world, there will be repercussions on prices, on insurance premiums and on the financial sector,” said Christine Lagarde in an interview with Madame Figaro. “We need to take that into account.”

She also said that she could imagine that different environmental, social and governance standards will be harmonised and tightened rather quickly.