ESG & Investing
ECB to Avoid Climate Laggards’ Longer Debt in Historic Tilt
- Poor rankings to mean longer-term debt purchases are limited
- Central banks pressured to do more amid rising temperatures
The European Central Bank headquarters in Frankfurt, Germany.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
The European Central Bank will limit purchases of longer-term debt issued by companies that rank poorly under a new scoring system created to screen out polluters and tackle climate change.
The maturity limit will cut the “longer-term exposure of the Eurosystem to transition risks,” according to a statement Monday. The ECB will also give “special treatment” to green bonds meeting “stringent” requirements and buy more securities from high scorers.