central banks

This paper outlines three perspectives on the emerging concept of double materiality, along with their implications for monetary and financial policy and the challenges they raise in theory and practice. Read more

This paper presents an overview of current practices on sustainable and responsible management of central bank portfolios and provides recommendations for central banks on how to introduce sustainable, responsible or ESG (environmental, social and governance) aspects to those portfolios. Read more

This paper reviews the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and their application by central banks to date. It also considers potential enhancements for central banks’ climate disclosures and their possible implications for the wider financial system. Read more

This policy briefing, the first in a new series of papers published as part of the INSPIRE Sustainable Central Banking Toolbox, reviews the potential pitfalls of using a modelling framework that omits climate-related information and provides some reflections on how central banks can integrate climate change considerations into their 'workhorse’ models.  Read more

This Final Report provides the conclusions of the NGFS-INSPIRE Study Group on Biodiversity and Financial Stability on the scale of the threats from 'biodiversity-related risk' to the global financial system, reviews the actions that central banks, supervisors and other financial actors are already taking in response, identifies policy options for evaluating and mitigating financial risks arising from biodiversity loss and makes recommendations for near-term action. Read more

Biodiversity loss poses a significant and under-appreciated threat to financial stability, and central banks and financial supervisors should act to confront nature-related risks, according to a new report published today (24 March 2022) by a group of central bankers, financial supervisors and academic researchers. Read more

This report establishes a firm basis for central bank supervisory action in mitigating the risks from the transition to net-zero and proposes a policy change to enable the Bank of England to better identify and reduce transition risk. Its analysis is relevant for other central banks around the world, too. Read more

In this blog post for the Central Bank of Hungary Danae Kyriakopoulou discusses environmental sustainability in relation to central banks and financial supervisors. Read more