ECB Action on Climate Change will Transform Global Financial Markets

An ECB Executive Board member has floated the possibility of incorporating ‘green’ considerations into asset purchase policiesAlthough the change is probably a long way off, it will spark other changes that could accomplish the same goal of integrating climate-related risks in financial marketsEfforts by central banks, regulators and others on climate change have been moved to the front burner and banks that aren’t prepared will face significant disruption Many Environmental, Social, and Corporate Governance (ESG) risks will affect the financial sector, but none so much as regulatory actions to address systemic risks like climate change. A speech by a European Central Bank (ECB) Executive Board member, Isabel Schnabel, has made waves by suggesting that monetary p...