Connect with us

Hi, what are you looking for?


ECB could require climate risk disclosure for asset purchases – De Cos

Stock Markets10 minutes ago (Jul 02, 2021 05:00AM ET)

(C) Reuters. FILE PHOTO: FILE PHOTO: The European Central Bank (ECB) logo in Frankfurt, Germany, January 23, 2020. REUTERS/Ralph Orlowski/File Photo

MADRID (Reuters) – The European Central Bank may consider imposing climate risk disclosure conditions in its criteria for buying corporate bonds and accepting collateral for lending, policymaker Pablo Hernandez de Cos said on Friday.

Central banks around the world are busy working out what their role should be in the fight against climate change, and ECB President Christine Lagarde is keen to incorporate it into monetary policy.

“Central banks have a balance sheet, we have assets generated by our monetary policy activity,” Hernandez de Cos told a panel organised by Spain’s Energy and Environment Ministry.

“We could potentially make our purchases of corporate bonds, or our collateral, we could make the acceptance or purchase of those conditional on the companies whose bonds we are going to buy meeting established conditions on releasing information that obviously also helps us in the fight against climate change.”

Until now, the ECB’s guiding principle in a five year-old programme of corporate bond purchases that now totals hundreds of billions of euros has been one of market neutrality, buying bonds in proportion to their outstanding amounts.

“Central banks have a duty to internalise (borrowers’)physical and transition risks and we will do so,” De Cos said.”

($1 = 0.8456 euros)

ECB could require climate risk disclosure for asset purchases – De Cos

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like


Stock Markets25 minutes ago (Jul 16, 2021 05:46PM ET) (C) Reuters. FILE PHOTO: Johnson & Johnson’s Neutrogena Cool Dry Sport sunscreen, which is part...


Builders, creators and developers, this one’s for you! TechCrunch has always been about discovering fresh solutions and shining the light on exciting, new products...

Disclaimer: it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial or health advice. Copyright © 2021 Wise Gazette. All Rights Reserved