NBS has published a climate report on the carbon footprint of its investment portfolio

Neglected environmental protection takes its toll, which is why monitoring the carbon footprint of individual decisions and processes is the trend of the times. Banks, including central banks, have already begun to monitor similar indicators. For example, the largest part of the carbon footprint of the investment portfolio of the National Bank of Slovakia (NBS) consists of government bonds.

The common goal is carbon neutrality

Central banks are among the institutions that invest money in the financial markets. They invest to make a profit from which they finance the operation of the institution and therefore do not keep them in a current account or in a safe. Investors weigh return and risk when deciding on a portfolio structure. At the same time, however, they want to align their investments with the obligations of the Paris Agreement or the European goal of carbon neutrality. "Therefore, the central banks of the euro zone have agreed to regularly publish the carbon indicators of their investments in euro portfolios, which are not intended for the performance of monetary policy. Thus, central banks have added a tool for monitoring climate risks in investments," states the adviser to the vice-governor of the NBS, Roman Vasiľ.