Chart 2  Market portfolio vs. ECB holdings  Source: Papoutsi, Piazzesi, Schneider (2021). Data sources: ECB (SHS & CSDB), Eurostat, Orbis. Notes: Market shares measured as capital income by sector. “Dirty Manufacturing” = oil & coke, chemicals, basic metals, nonmetallic minerals. Other Manufacturing = food, beverages, tobacco, textiles, leather, wood, paper, pharmaceuticals, electronics, electrical equipment, machinery, furniture, construction, and other manufacturing.
Based on Eurostat’s air emissions accounts by sector, the authors go on to show that the ECB’s portfolio distribution across sectors is positively correlated with sectoral emission shares, in contrast to the overall market portfolio (Chart 3). [17] Hence, the overrepresented sectors tend to be those with particularly high emission shares.