ESG for central banking focus report 2021
The Covid-19 pandemic heightened the realisation that climate change cannot simply be solved by a tax – there is a need to steward the transition towards net-zero. Environmental, social and governance (ESG) reporting and investing is one option on the table and is a framework every financial institution is now considering – central banks included.
The mounting pressure to implement ESG has arisen from legislators, consumers and the media. To remain attractive as a business, you need to perform well from an ESG perspective. This report highlights some of the regulatory initiatives under way worldwide to ensure the financial sector takes into account their actions with regards to climate change – voluntary disclosures can only do so much but a change in the tide could see mandatory ESG reporting become mainstream.
The report also flags challenges for central banks themselves – as guardians of the financial system, they have a duty to lead by example. But the lack of liquidity within ESG-compliant assets is proving a problem for many.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
ESG reserves adoption challenged by reliance on sovereign bonds
Higher issuance of government-compliant bonds is insufficient to offer investable alternatives to central banks.
Finding room for ESG
Central Banking speaks to four policy-makers for their thoughts on ESG principles, their respective institutions’ approaches, potential restrictions and an update on integration.
Reforming FX reserve and macroeconomic management for ESG
Arnab Das, global market strategist, Europe, the Middle East and Africa, at Invesco explores why central banks must play a role in ESG risk mitigation, management and prevention, as they are expected to during wars, pandemics and other major shocks.
Should ESG reporting be made mandatory?
As concern around the impact of climate change on businesses grows, many regulators have announced their intentions to include ESG requirements in reporting frameworks
How to #GreentheCBs
Invesco‘s Claudia Castro and Wim Vandenhoeck explore how central banks can strike a balance between innovation and disruption with their sustainability agendas.
Approaching green central bank balance sheets
Climate-friendly balance sheets come at a ‘greenium’, panellists argue at a roundtable at Central Banking’s Summer Meetings, in collaboration with Invesco.