Climate risk becomes more relevant to reserve managers
More central banks invest in green bonds and include climate risks in their benchmarks
An increasing number of central banks are adding climate risks to their benchmarks, according to the Reserve Benchmarks 2021 – although overall numbers remain low.
Overall, 13% of respondents said they now include these risks, up from 8.3% in 2020. In a similar vein, the percentage of central banks that said they screen environmental social and governance (ESG) factors in their portfolios also increased from 21.6% to 34.8%.
Additionally, more central banks say they invest part of their reserve
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