The European Central Bank has published the updated set of climate-related statistical indicators. These updates incorporate advanced methodologies, new datasets and adjustments to reflect inflation effects, ensuring more precise tracking of decarbonisation efforts and the intensifying impact of climate-related hazards. The indicators also help to better assess the impact of climate-related risks on the financial sector and to monitor the development of sustainable and green finance.
The indicators cover 3 areas:
1. Experimental indicators on sustainable finance provide an overview of debt instruments labelled as “green”, “social”, “sustainability” or “sustainability-linked” by the issuer that are issued or held in the euro area.
2. Analytical indicators on carbon emissions financed by financial institutions provide information on the carbon intensity of the securities and loan portfolios of financial institutions, and on the financial sector’s exposure to counterparties with carbon-intensive business models.
3. Analytical indicators on climate-related physical risks analyse the impact of natural hazards, such as floods, wildfires or storms, on the performance of loans, bonds and equities portfolios.