September 2022: New ECB Explainer – How are we aiming to decarbonise our corporate bond holdings?

By the European Central Bank (ECB)

The climate crisis is one of the biggest challenges of our time. It poses severe risks for the economy and it affects price stability, our core mandate as a central bank. This is why we are committed to doing our part in the fight against climate change, within our mandate.

Climate change has an impact on our work in a number of ways, for instance on the climate-related risks of the assets we hold. This is one of the areas where we are taking action: we will decarbonise our corporate bond holdings with the aim of putting them on a path aligned with the 1.5 degree goal of the Paris Agreement. To do that, we will look at how the companies that issue bonds – known as “issuers” – are working to mitigate their climate impact. We will buy more from those that do better in this regard and less from those that do worse.

Link: How are we aiming to decarbonise our corporate bond holdings?