The Bank of Italy steps up its action on climate risks and sustainable finance

In its role as the central bank, an investor and a supervisor, the Bank of Italy has long been engaged in analysing climate risks and sustainability through its research activities and contributions (see Annual Report for 2020, and 'Central banks, climate risks and sustainable finance'). In July 2021, the Bank published its Responsible Investment Charter, which sets out the principles, standards and commitments for its own actions, as an investor, in favour of an economically sustainable growth model. Furthermore, for some years now, the Bank of Italy has been working steadily to reduce the environmental footprint of its activities, by lowering greenhouse gas emissions, energy and natural resource consumption and reducing the production of waste (see the Environment Report).

During the Italian Presidency of the G20, the Bank's commitment was reflected in its leading role in defining an ambitious multi-year agenda for sustainable finance and the fight against climate change (see The G20 Presidency programme on Sustainable Finance). In addition, in 2022, the Bank became a member of the Steering Committee of the Network for Greening the Financial System.

To further boost its sustainability actions, the Bank of Italy has decided to set up a Climate Change and Sustainability Committee. The Committee, presided over by a member of the Governing Board, will contribute to defining the Bank's sustainable finance strategy. The Bank has also set up a Climate Change and Sustainability Hub, composed of experts on sustainable finance, which will monitor the debate on the subject, stimulate and coordinate analyses, and facilitate the sharing of information among the participants in the various national and international working groups. The Hub will also cooperate with similar units recently created at the European Central Bank and some other national central banks.

On the occasion of the establishment of the Committee and the Hub, the Bank of Italy's website will add a new section on Sustainable finance, with various subsections containing documents relating to the Bank's main activities (sustainable investment, monetary policy, banking supervision, financial stability, research, and speeches).