ECB Asked by Nonprofits to Set More Ambitious Climate Targets

A group of 12 nonprofits has asked the European Central Bank to set more ambitious targets around plans to tilt its corporate bond program toward greener issuers.

The ECB, which on Thursday delivered an historic 75 basis point interest-rate increase in an effort to tame record inflation, has gradually broadened the scope of its climate initiatives. In July, it unveiled plans to recalibrate its bond portfolio in a way that “penalizes” companies with a big carbon footprint. The move, though widely hailed as a significant step forward, doesn’t go far enough, according to the nonprofits.