Deutsche Bundesbank

Bundesbank is an NGFS member

Bundesbank programme on “designing climate policies“

Sabine Maudere is vice chair of the NGFS

Climate policy and macroeconomic analysis (report, 2022)

Meinerding et al, 2022 (discussion paper)

Mauderer, 2022 (speech)

Green-targeted lending facility (under discussion at ECB)

ECB will limit the share of assets issued by entities with a high carbon footprint that can be pledged as collateral (formal commitment, implementation in 2024)

ECB is tilting corporate bond holdings on a path aligned with the Paris Agreement

Advanced ESG data model in the Centralised Securities Database (CSDB), identifying all types of sustainable bonds; will rank sustainability level as “self labelled”, “verified by a second party” and “fully certified”

ECB accepts sustainability-linked bonds as collateral

ECB will make environmental sustainability disclosures a condition of eligibility in collateral purchases (formal commitment, implementation in 2026)

ECB will make environmental sustainability disclosures a condition of eligibility in the corporate sector purchase programme (formal commitment, implementation in Q1 2023)

ECB purchased green bonds under both the corporate and public sector purchase programmes

Climate change risks incorporated into haircuts applied to corporate bonds used as collateral (under discussion at ECB)

Eurosystem will implement a set of common minimum standards for how national central banks’ in-house credit assessment systems should include climate-related risks in their ratings (formal commitment, implementation in 2024)

Climate-related quantitative and qualitative restrictions on banks’ portfolios (under discussion at ECB)

Mandatory sustainability-related disclosure in the financial services sector

Banks are required to integrate climate and environmental risks into risk management practices

Supervisory climate risk stress tests for banks (2022 results)

Microprudential climate-related capital-based measures (under discussion at ECB and EBA)

Macroprudential climate-related capital-based measures (under discussion at ECB and EBA)

Requirement for banks to publish Paris-compatible transition plans (under discussion at ECB; supported by Bundesbank)

Development of microprudential stress tests (under discussion; referred to in bilateral interactions )

Bundesbank scenario analysis on financial system using NGFS scenarios

BaFin guidance notice on sustainability risk management

EBA published binding standards on climate risks within balance sheets, mitigating actions, green asset ratio and banking book taxonomy alignment ratio, and ESG risks

ECB economy-wide climate stress test (2021 results)

EBA ran a consultation to incorporate ESG risks into the governance, risk management and supervision of credit institutions and investment firms

EBA ran a consultation on Pillar 3 disclosure of ESG risks

ECB ran a public consultation on its guide on climate and environmental risks

ECB will develop new statistical indicators to assess the carbon footprint of banks, as well as their exposures to climate-related physical risks (formal commitment, implementation in Q4 2022)

ECB conducted a review on how credit ratings reflect climate risk and is urging rating agencies to be more transparent and ambitious on climate risk

Supervisory assessment of banks’ climate risk management and disclosure practices

Improvement of the availability and quality of climate data to better identify and manage climate-related risks and opportunities (formal commitment)

ECB thematic review on climate and environmental risks: results fed into the supertvisory review process, impacting pillar 2 capital requirments

Sustainable investment policies in Bundesbank’s euro- denominated non-monetary policy portfolio includes tilting based on carbon risk rating and greenhouse gas intensity

Disclosure of Bundesbank’s progress towards operational environmental goals in environment reports

Education for young people, high-school teachers and students, and university students on climate-related financial risk and green finance within Bundesbank, and at Euro20+ events

Eurosytem’s BIS innovation hub to build a database of corporate climate-related disclosures (formal commitment)

Green finance dashboard hosted by Bundesbank; tracks national emissions and green finance metrics

Eurosystem has contracted ESG rating agencies Carbon4 and ISS ESG to integrate climate risk into the non-monetry policy portfolio

Climate-related disclosures of euro-denominated non-monetary policy portfolios by Deutsche Bundesbank (2022 results)

Creation of green finance steering committee

Contributed to the development of the EU taxonomy; scorecard points suspended due to inclusion of gas

Internal environmental policy