Photo: Thiago de Andrade / Unsplash
The Swiss Central Bank said its mandate does not allow it to tackle climate or biodiversity goals, even as its of “great importance for our society”, while a complaint was filed against the EU Commission over its omnibus proposals, the European Banking Authority released an ESG climate risk dashboard, and Pakistan’s central bank plans to launch a green taxonomy by June. All this and more in this week’s roundup.
Swiss central bank mandate does not cover climate or biodiversity goals
The Swiss National Bank (SNB) does not have the mandate to tackle climate change or biodiversity issues, chair Martin Schlegel said at the central bank’s annual general meeting on Friday.
“I understand this topic is of great importance for our society and all humanity and it is of personal concern for me,” Schlegel said.
“But our foreign currency reserves are there to serve our mandate. Climate goals or biodiversity are not part of our mandate”.
Activists gathered outside the shareholder meeting to demand that the central bank divest from fossil fuels and influence companies to take action on climate change. While the SNB has set out exclusion policies on its investments, it is still likely to be investing in fossil fuels as it does not take into account scope 3 emissions.
EBA launches climate risk dashboard
The European Banking Authority (EBA) released a dashboard covering climate risk across the EU/EEA banking sector. It shows the spectrum of green financing and covers risk from both a transition and physical perspective.
The data show that EU banks have a high exposure (over 70% in many countries) to sectors that are contributing to climate change. This means banks may have significant exposure to climate-related transition risk, the EBA said. In most countries, physical risk is below 30% but the degree to which data is disclosed varies.
The dashboard also includes indicators related to the banking sector’s alignment with the EU taxonomy, which shows the green asset ratio is low at less than 3% on average. However there is a noticeable variation across banks and countries.
Nonprofits file complaint over EU’s omnibus proposal
A group of nonprofits filed a complaint against the European Commission over its sustainable omnibus directive, arguing that the body is weakening rules without consulting the public.
The omnibus proposal limits the scope of companies required to submit climate data, including emissions, and curbs other supply chain checks. The commission argues that the bloc’s myriad sustainability rules are confusing and make businesses less competitive, but investors say the data rules are vital for transparency.
Legal charity ClientEarth and others said in a complaint filed with the European ombudsman that the EU has failed to assess the impacts of changing the rules, which amounts to maladministration. They also accused the commission of holding closed-door meetings with lobby groups and not holding a public consultation.
Elsewhere, ratings agency S&P Global said that setbacks on sustainable reporting rules in the EU and US will likely make it more difficult to assess the climate-related credit risk of companies.
Pakistan to launch green taxonomy by June
The State Bank of Pakistan will launch a green taxonomy by June, Pakistan’s finance minister announced, as the country looks for ways to reduce its emissions by 50% by 2030.
Pakistan could also launch a green sukuk, a Shariah-compliant Islamic bond that would be used to finance green projects, Finance Minister Muhammad Aurangzeb said.
He said they were also hoping to launch the first green panda bond. A panda bond is a Chinese yuan-denominated bond issued by a non-Chinese entity in China’s domestic market.
Qatar releases sustainable finance framework
The Qatar Central Bank issued a sustainable finance framework which includes guidance on enhancing transparency, revenue management, reporting and external audits. The framework is designed to increase growth and innovation within Qatar.
The central bank previously launched a sustainability strategy to position Doha as a hub for green finance and innovation, including climate risk stress testing, ESG disclosure requirements and sustainable sovereign debt issuance.
ISSB to decide on biodiversity and human capital reporting
The International Sustainability Standards Board (ISSB) is expected to decide if it will issue reporting standards for biodiversity and human capital in the coming months, Responsible Investor reported.
If it does decide to issue standards, it likely would not be launched before 2026. The ISSB voted last year to start various research projects on biodiversity, ecosystems and human capital, and met recently to discuss the first phase which is focused on evidence of investor interest, effects on entities’ prospects and other standards and disclosures.
Meanwhile, the IFRS Foundation and the Taskforce on Nature-related Financial Disclosures signed a memorandum of understanding to expand their existing collaboration around nature, including sharing research and technical expertise.
Climate change could destroy capitalism, warns insurer
The climate crisis could destroy capitalism due to increased financial costs from extreme weather, a top insurer warned.
Günther Thallinger, a board member at Allianz SE, said the world is approaching temperature levels at which insurers will not be able to cover climate risks, which would mean other financial services would not be available.
Insurance companies are already starting to pull back or limit coverage in areas prone to extreme weather, like flooding and wildfires.
In his LinkedIn post, Thallinger called it a “climate-induced credit crunch”.
“This applies not only to housing, but to infrastructure, transportation, agriculture, and industry,” he said. “The economic value of entire regions – coastal, arid, wildfire-prone – will begin to vanish from financial ledgers. Markets will reprice, rapidly and brutally. This is what a climate-driven market failure looks like.”
Research notes
Mind the Climate-related Protection Gap: Reinsurance Pricing and Underwriting Considerations
This paper looks at the reinsurance market and the role of reinsurance in climate change and narrowing the climate protection gap.
Managing the Climate Change-fueled Property Insurance Crisis
In this paper, the authors discuss how losses from extreme weather events have reduced insurers’ ability to diversify risks, resulting in less coverage. It offers suggestions for how policymakers can help reduce risk from climate change.
State of Nature and Climate 2025
This World Economic Forum briefing paper provides a global overview of the health of the planetary system and progress by companies on addressing climate and nature risks. It finds that the stability of the earth system is at risk, as well as global economic development.
Healthy Debt on a Healthy Planet
This final report from the governments of Colombia, Kenya, France and Germany offers recommendations for how low- and middle-income countries can have a holistic approach to the triple crisis of debt pressure, nature loss and climate impacts.
This page was last updated April 29, 2025
Written by
Moriah Costa is the Editor-in-Chief of Green Central Banking and has over a decade of experience writing about banking and finance. She is an award-winning American journalist based in Paris and has written for major international publications, including Reuters, The Guardian, and S&P Global. Having grown up in water-stressed Arizona, she has always had a strong interest in bringing awareness to climate and environmental issues.
