Climate action

  • Andrew Baily has committed to decarbonise Bank of England’s corporate bond purchases scheme. A commitment still yet to be realised.
  • The BoE has disclosed its climate-related financial risks, including its own balance sheet
  • The BoE has been a part of the Treasury-led taskforce which in November 2020 announced that TCFD disclosures will become mandatory across much of the UK economy (albeit only by 2025).

Climate inaction

  • Andrew Bailey postponed the Climate Biennial Exploratory Scenario (​CBES) by one year to July 2021
  • Even before the stress tests were launched, Andrew Bailey suggested that there will be no change in banks’ capital requirements in response to any high carbon exposures that the tests identify.
  • Despite the BoE’s assessment in its 2020 disclosure that its corporate bond portfolio is ‘consistent with an average temperature increase of 3.5°C above pre-industrial levels by 2100,' the Bank failed to make meaningful action to green the UK’s financial system.

How the Bank of England stacks up

Rank Country Aggregate Score (out of 130) Grade (A+ to F) Research and Advocacy (out of 10) Monetary Policy (out of 50) Financial Policy (out of 50) Leading by Example (out of 20)
4 United KingdomUnited Kingdom 38 D+ 10 4 19 5

Central Bank/Supervisor

Bank of England

More info


Research & Advocacy

10 out of 10

High-impact

  • N/A

Medium-impact

  • Member of the NGFS

Low-impact

Monetary Policy

4 out of 50

High-impact

  • N/A

Medium-impact

Low-impact

  • Due Diligence Questionnaires on collateral holdings (referred to in our bilateral interactions)

Financial Policy

19 out of 50

High-impact

  • N/A

Medium-impact

Low-impact

Leading by Example

5 out of 20

High-impact

  • N/A

Medium-impact

  • N/A

Low-impact

What steps are missing in the Bank of England toolbox to address climate risk?

Civil society expects the bank to do the following:

  • Support a green and fair transition by greening its lending schemes; aiding investments in decarbonisation, such as through recycling finance from the Covid-19 response facilities into the National Infrastructure Bank; and fulfilling commitments to green its own balance sheet.
  • Regulate private finance, such as through re-calibrating risk weightings and requiring credible net-zero plans from all regulated financial institutions.
  • Coordinate with the Treasury and others to develop a fit for purpose institutional framework for a net zero transition, including a Green Finance Action Taskforce, development of public taxonomy (both green and dirty), and development and reporting on metrics of progress on shifting financial flows from dirty to green.
  • Use its prominent role in the international financial system and central banking community to advocate for reforms supporting global climate justice.