Bank of Greece releases its eight-point plan to fighting climate change

The Bank of Greece (BoG) pledged on Wednesday to make finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development, and released an eight-point plan it has committed to in response to climate change.

In the context of the 2021 United Nations Climate Change Conference (COP 26) currently taking place, BoG said it was “one of the first central banks to respond to the issue of climate change,” starting in 2009 with the founding of the interdisciplinary Climate Change Impacts Study Committee, bringing together distinguished experts from various domains of knowledge.

After reviewing its actions over the past years related to climate change, it said it commits to the following in the years to come:

– Develop and maintain an action plan for addressing climate change and sustainability issues within its field of responsibility;

– Continue to engage with financial authorities, institutions and stakeholders on sustainability issues, to raise awareness and promote a better understanding of the impact of climate change on the financial system, facilitate transition to a carbon-neutral economy and enhance coordination and consistency of international policies;

– Make use of the NGFS recommendations, best practices, guides and training material in implementing the action plan and develop the necessary internal competences, skills and knowledge of climate and environmental risks;

– Conduct theoretical and empirical research and provide statistical data on climate and environmental issues, in collaboration with the various stakeholders;

– Assess the financial system’s exposure to climate-related and environmental risks, including identification of the channels of their transmission to the financial system and risk impact analysis under different scenarios;

– Explore ways to embed the outcome of research and analysis and the available tools and methodologies in macroeconomic forecasting models, financial stability monitoring and supervisory approaches;

– Apply sustainable and responsible investment principles in its non-monetary policy portfolios and, consistent with the common stance of the Eurosystem, start making annual climate-related disclosures on its non-monetary policy portfolios within the next two years; and

– Design and implement an organisation-wide programme for reducing the environmental impact of own operations, by implementing environmental management systems and applying circular economy principles in resource management.