Climate change has consequences for society, the economy and the financial system, and therefore also has an impact on the core tasks of a central bank. In light of this, the Bundesbank will from now on regularly report on how it takes the financial implications of climate change and climate policy into account in its work.

Against this backdrop, the Bundesbank has steadily expanded its analytical capacities in this area. It is, moreover, playing an active role in implementing the Eurosystem’s action plan to incorporate climate change considerations into monetary policy. This, and all further climate-related work, is being coordinated and managed by the Green Finance Steering Committee.

The Bundesbank continuously analyses the financial risks that climate change and climate policy present for its own balance sheet. This includes calculating greenhouse gas metrics and other climate-related measures for the Bundesbank’s euro-denominated portfolio (euro portfolio), which is held for non-monetary policy purposes.

First results are summarised in the present report. The report is structured around the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).