Closing the climate data gap

In 2022, the European Central Bank (ECB) pioneered a climate risk stress test carried out among the
most significant financial institutions in Europe as part of its annual stress testing exercise. Building on the test’s findings, the ECB launched last month a set of climate-related statistical indicators. The announcement forms part of the ECB’s mandate to incorporate climate change considerations into its monetary policy framework, which includes transitioning nearly €350 billion in corporate bond portfolios towards issuers with improved climate performance, according to ECB’s Climate Action Plan.

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