But our financial assets can be just as exposed to financial risk as those of commercial banks. In this regard, central banks should practise what they preach. Hence, I believe that central banks should factor climate-related financial risks into their risk management. That should also apply to financial risks arising from monetary policy operations.
For this purpose, the Eurosystem has a legitimate interest in making climate-related financial risks more transparent: In my view, we should consider only purchasing bonds or accepting them as collateral for monetary policy purposes if their issuers meet certain climate-related reporting requirements. In addition, we could examine whether we should use only those ratings that appropriately include climate-related financial risks.