Climate change and its implications are impacting increasingly on macroeconomic variables such as the growth outlook and price stability, and may jeopardise the stability of the financial system. In view of this, the Bundesbank will continue to incorporate climate-related factors into its analyses going forward and devote more of its resources to analysing nature-related risks. Moreover, it will further refine its own sustainability strategy and derive objectives from this for the individual business units. In addition, it will build out its range of training and outreach activities, both internally and externally. On national and international committees such as the NGFS, the Bundesbank continues to advocate for a sustainable economic and financial system. With First Deputy Governor Dr Sabine Mauderer still chairing the NGFS in 2025, the Bundesbank can press ahead with setting the agenda and shaping the climate-related discourse among participating central banks and supervisors. 

With the scope of its statutory mandate, the Bundesbank strives to incorporate climate and sustainability-related aspects into its own investment decisions as part of the efforts towards achieving the goals of the Paris Climate Agreement as well as the climate neutrality goals of the Federal Republic of Germany and the EU. Such aims must consistently align with the essential objectives of the Bundesbank’s financial investments. It lies in the nature of foreign currency portfolios, as part of the reserve assets, that they are concentrated on specific currencies as well as secure and liquid forms of investment. 

Furthermore, the potential implementation of quantitative climate-related targets requires suitable data to be available that enable target achievement to be both measured and managed. As explained in this report, the GHG metrics that are currently available, for the most part, are of limited use here in as far as they relate only to scope 1 and 2 emissions – emissions that are of secondary importance relative to scope 3 emissions. This is currently the case for the Bundesbank’s euro portfolio. 

Extended, mandatory sustainability reporting due to the entry into force of European directives could improve the data situation over the coming years. The Bundesbank considers market transparency through climate-related and nature-related disclosures to be essential for analysing and managing the relevant risks in terms of both the financial system as a whole and its own balance sheet. Over the short to medium term, the Bundesbank is committed to improving the availability and quality of sustainability data, particularly data on the scope 3 emissions of financial institutions and nature-related data. As part of its committee work, the Bank is pushing to ensure the consistency of disclosure requirements and to focus on relevant data. In addition, by taking the lead in various procurement processes on behalf of the ESCB, it makes a vital contribution towards ensuring that the sustainability data available to ESCB members meet the highest standards in terms of quality and are as comprehensive and granular as possible. To this end, the Bundesbank also takes note of developments in the data situation. 

The Bank is striving to refine its analytical activities as well as the sustainable investment strategies for the euro portfolio and the foreign currency portion of the reserve assets so as to keep pace with advances in these areas. In this context, the Bundesbank’s annual climate-related disclosures play an important role in monitoring and disclosing progress.