The economic outlook at the time was marked by the risk of a further recession and potentially even deflation – a combination that would likely have resulted in worse outcomes for financial stability. So in 2014 and thereafter, the ECB took further decisive action to counteract these forces and comply with its price stability mandate.
The goal being, ultimately, to drive banks towards a more environmentally friendly business model. Banks may also be exposed to an increasing litigation risk. If a bank, as a signatory to a climate commitment, does not live up to it, not only could its reputation be harmed, it could even be held liable, for example by NGOs.