Sustainable finance according to the Bank of Italy
According to the Bank of Italy, attention to environmental, social and governance (ESG) issues has led to the rapid spread of so-called ‘sustainable’ finance
According to the Bank of Italy, attention to environmental, social and governance (ESG) issues, ESG being the acronym for Environmental, social, and corporate governance, has led to the rapid spread of so-called ‘sustainable’ finance. However, the primary responsibility for tackling climate change always lies with governments, which can concretely promote the activities needed for development through dedicated legislation.
Why it matters for central banks
Central banks, too, cannot avoid observing and implementing change. As investors, central banks are a point of reference for other institutions: in analysing and managing risks; in adopting investment choices consistent with decarbonisation objectives; in raising savers’ awareness.
The Bank’s contribution to sustainable finance
On this subject, the Bank of Italy states, verbatim:
“The Bank of Italy makes an active contribution to sustainable finance through the various functions it performs: those of investor, monetary authority, supervisor of financial intermediaries and research institute. I
Show moreShow less
n these areas, it publishes speeches and research based on internal analyses to increase knowledge and awareness of the importance of measuring and managing sustainability profiles in the financial choices of intermediaries, investors and policy makers. In addition, the Bank takes part in international initiatives such as the global network of central banks and supervisory authorities (Network for Greening the Financial System, NGFS), which since 2017 has coordinated analyses, according to common objectives and lines of action, to strengthen the role of the financial system in managing climate risks and in redirecting financial flows towards sustainable investments ....” source: https://www.bancaditalia.it/focus/finanza-sostenibile
This shows us how much change matters and how essential it is considered, even by a public-law institution, regulated by national and European rules, such as the Bank of Italy.
For further information and in-depth coverage, please see the institution’s page, from which the data in this article were taken. https://www.bancaditalia.it/focus/finanza-sostenibile/
Was it useful? Pass it on to someoneSharing an investigation is worth more than a like.
