Bundesbank President Jens Weidmann has spoken out in favour of central banks taking adequate account in their risk management of climate-related financial risks that could arise from their monetary policy operations. He argues it is therefore legitimate to expect better information to be provided. 

“The Eurosystem should consider only purchasing securities or accepting them as collateral for monetary policy purposes if their issuers meet certain climate-related reporting obligations,” said Mr Weidmann in a speech given at the European Banking Congress in Frankfurt am Main. 

According to Bundesbank President Jens Weidmann central banks could do more to curb global warming. In an op-ed for the “Financial Times” he pointed out a number of possible courses of action. However, he added, central banks should stay focused on their primary objective, price stability. “When it comes to saving the planet, central banks do not have a magic wand”, he wrote.