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ECB Climate Policies to Change Firms’ Behavior, Says Natixis

  • Rejigging of ECB’s portfolio provides ‘unprecedented impetus’
  • Tweaks to bond policy come as European borrowing costs rise

The European Central Bank’s “trailblazing” climate debt policies could push companies to change their environmental behavior as borrowing becomes more expensive, according to the investment-banking arm of Natixis SA.

The ECB plans to rejig its corporate bond portfolio to favor issuers that pollute less. The timing of the shift, when the central bank is also raising interest rates for its first time in over a decade, makes it “particularly groundbreaking,” according to a team of analysts.