Banca d'Italia's third Annual report on sustainable investments and climate-related risks has been published.
The Report analyses the Bank's non-monetary policy portfolios and is divided into four chapters that illustrate the decision-making process for portfolio management, the investment strategies, the risk management system and the sustainability metrics and targets.
The Report is published in conjunction with similar documents issued by the ECB and other Eurosystem central banks (using the same reporting template) and in compliance with the commitments made by the Bank in 2021 in its 'Responsible Investment Charter', namely to regularly disclose the results of its sustainable investment strategies for non-monetary policy portfolios and to promote a culture of sustainability in the financial system and among the public.
In this Report, Banca d'Italia confirms its commitment to manage its non-monetary policy investments in line with the objectives of the Paris Agreement and of those set by the European Union. However, several factors affect the achievement of these objectives, including compliance with the climate neutrality commitments made by the companies and countries in whose securities the Bank invests, the choices of other financial market participants, and the fine-tuning of the methodologies used for estimating climate-related risks.