Climate measures

Climate change and biodiversity loss are already having an impact on the living environment and the economy. The Bank of Finland is vested with the duty to maintain the stable development of prices as well as the financial system.

Climate warming and the advancement of biodiversity loss have an impact on the central bank’s ability to maintain price and financial stability.

Responsible investment

The core principles and objectives of central banks’ investment operations are typically safety, liquidity and return. At the Bank of Finland, responsibility has been added alongside these as a fourth objective guiding investment decisions.

Climate change does not yield to the financial system

Climate change and the green transition of the economy have a bearing on the financial system and its risks. The Bank of Finland is examining how climate change, biodiversity loss and the green transition affect financial stability and how the emerging stability risks could be prevented.

Consideration of climate in monetary policy

The most important objective of the European Central Bank is to maintain price stability, but in line with the strategy, climate factors are taken into consideration both in the planning of monetary policy and its practical implementation – without compromising price stability.

Topical

News 30 Jan 2024

ECB steps up climate work with focus on green transition, climate and nature-related risks

Analysis 19 Jul 2023

Climate change must be fought – what does PACTA say about the transition risks for banks?

The need to rapidly reduce carbon dioxide emissions will adversely impact the operations of many companies, and may make old operations unprofitable.

Analysis 15 Mar 2022

The IMF is going to significantly step up its climate work

The IMF’s new comprehensive Climate Strategy is a clear signal that the IMF intends to meet the challenge of climate change.

Analysis 22 Jan 2021

Increased flood risks caused by climate change will also affect banks

Due to climate change, extreme weather events will become more frequent, resulting in material damage to buildings and other infrastructure.

Analysis 11 Sep 2020

The Bank of Finland manages its financial assets sustainably

The Bank of Finland manages about EUR 11 billion of financial assets.

Analysis 13 Jul 2020

Could the Green Supporting Factor help mitigate climate change?

The need for sustainable finance has grown because of the urgency to mitigate climate change.

Analysis 12 May 2016

Low oil price reveals implications of carbon risk

A significant proportion of the world’s investment assets lie with companies whose business activities produce large amounts of carbon dioxide.

More news

Bank of Finland

The Bank of Finland is committed to working for the benefit of climate and nature.

Combating climate change and biodiversity loss is a common challenge for us all. Climate warming and advancement of biodiversity loss destabilise the economy. Through its actions and research, the Bank of Finland is committed to working for the benefit of climate and nature.

Climate change and the ECB