Climate action

  • The BoE has overhauled its corporate bond purchase scheme to favour climate-friendly companies

  • The BoE has disclosed its climate-related financial risks, including its own balance sheet

  • The BoE is undertaking a climate stress scenario exercise, with the first results due to be published in 2022

  • The BoE is considering recalibrating its capital framework to better reflect climate risks

Climate inaction

  • The BoE’s adjustments to its corporate bond purchase scheme were said by academics to have a ‘negligible’ impact

  • Although the BoE is reviewing its capital requirements, its current framework may not account for the complex features and dimensions of climate risk

  • The BoE has not yet included climate considerations in its collateral framework

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)
5 United KingdomUnited Kingdom 46 C- 10 6 23 7

Central Bank/Supervisor

Bank of England

More info


Research & Advocacy

10 out of 10

High-impact

  • N/A

Medium-impact

  • Member of NGFS

Low-impact

Monetary Policy

6 out of 50

High-impact

  • N/A

Medium-impact

Low-impact

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

  • Public consultation on greening the CBPS

  • Green gilts eligible in market operations

Financial Policy

23 out of 50

High-impact

  • N/A

Medium-impact

Low-impact

Leading by Example

7 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

  • 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.

  • Fulfil its commitments to green its own balance sheet.