When purchasing assets, we must stick to our market economy principles-based approach – with an emphasis on market neutrality. But that also means ensuring that the Eurosystem is only exposed to default risk on a limited scale. It is therefore in the Eurosystem’s interest that financial risk stemming from climate change be made as transparent as possible. And this is where we should start.
It might make sense for us to purchase and accept as collateral for monetary policy purposes only these kinds of securities for which the issuers meet certain climaterelated reporting requirements. By taking this measure, the Eurosystem would also be supporting existing transparency initiatives.