The water level of the Rhine has shown that global warming is already having tangible economic effects in Germany. That is why the Deutsche Bundesbank has been examining the financial risks arising from climate change for several years. Increasingly, we are also focusing on risks stemming from the degradation of nature, says Bundesbank First Deputy Governor Sabine Mauderer, who oversees sustainability on the Executive Board, among other areas.

Climate change, the loss of biodiversity, and the transition to a climate-neutral, resource-efficient economy are changing the economic environment. Among other things, they can affect inflation and economic growth. They can also give rise to risks for individual financial institutions and for the financial system as a whole. The Bundesbank takes these risks into account in its analyses and activities, within its mandate.

Against this background, the Bundesbank has published a climate roadmap up to the end of 2027. The roadmap brings together the Bundesbank’s strategic objectives and planned work on climate and nature-related risks. It transparently lays out the focus areas for work on these risks up to the end of 2027.

Analytical focus 

The Bundesbank is currently focusing its climate and nature-related analytical work on three key areas: the transition to a climate-neutral, resource-efficient economy; nature-related risks; and physical climate risks and adaptation to the impacts of climate change.

Integrating climate and nature-related risks into core activities

The climate roadmap describes the specific objectives and measures of key business areas of the Bundesbank. The planned work includes further analysing the interactions between monetary policy, macroeconomic developments, and transition processes. Climate and nature-related risks will also be integrated more fully into banking supervision. In addition, the Bundesbank intends to expand the range of sustainability data it makes available to internal and external users.

The climate roadmap illustrates how the Bundesbank integrates climate- and nature-related risks into its various areas of responsibility and sets out the projects it plans up to the end of 2027.