With that in mind, Chair of the Federal Reserve Board Jerome Powell recently told Congress: “Climate change is an important issue but not principally for the Fed. […] That is for elected oﬃcials, not us.” [16] Democratically legitimate politicians need to decide on the tools to be used by our society to combat climate change – and it is also their responsibility.
The Bundesbank can support policymakers in this endeavour, as we manage the assets of various public authorities. We actively assist the public sector in “greening” its portfolios. Several of those public authorities have already explicitly incorporated sustainability clauses into their investment strategies. Our ﬁnancial market experts have provided them with conceptual support and are in charge of putting these strategies into practice.