The ECB will account for climate change in its corporate bond purchases, collateral framework, disclosure requirements and risk management, in line with its climate action plan.
The Eurosystem aims to gradually decarbonise its corporate bond holdings, on a path aligned with the goals of the Paris Agreement. It will limit the share of assets issued by entities with a high carbon footprint that can be pledged as collateral by individual counterparties when borrowing from the Eurosystem. It will only accept marketable assets and credit claims from companies and debtors that comply with the Corporate Sustainability Reporting Directive (CSRD) as collateral in Eurosystem credit operations. The Eurosystem will further enhance its risk assessment tools and capabilities to better include climate-related risks.
These measures aim to reduce financial risk related to climate change on the Eurosystem’s balance sheet, encourage transparency, and support the green transition of the economy.
Looking ahead, the Governing Council is committed to regularly reviewing that they are fit for purpose and aligned with the objectives of the Paris Agreement and the EU’s climate neutrality objectives.
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