In addition to the primary and secondary objective, the ECB needs to integrate risks related to climate change in its own risk management framework. We know that climate-related risks are a source of financial risk. And since we expect financial institutions to manage their climate-related risks, the ECB should lead by example.
And finally – central banks should be transparent about the climate risks on their own balance sheets. And they should ensure that their own reserves are aligned with international sustainability goals and Corporate Social Responsibility standards.