Green Finance

Network for Greening the Financial System

The Network for Greening the Financial System (NGFS) is a global network of central banks and supervisory authorities advocating a more sustainable financial system. Its aims to analyse the consequences of climate change for the financial system and to redirect global financial flows in order to enable low-carbon economic growth. The Bundesbank, like the Federal Financial Supervisory Authority (BaFin), is one of the founding members of the NGFS and is represented on the Steering Committee by Executive Board member Sabine Mauderer.

In April 2019, the NGFS presented its first comprehensive report: “A call for action – Climate change as a source of financial risk”. At its core are six recommendations for action chiefly aimed at central banks, supervisors and legislators:

  • Integrating climate-related risks into financial stability monitoring and micro-supervision
  • Integrating sustainability factors into own portfolio management
  • Bridging data gaps
  • Building awareness and intellectual capacity and encouraging technical assistance and knowledge sharing
  • Achieving robust and internationally consistent climate and environment-related disclosure
  • Supporting the development of a taxonomy of economic activities