The ECB and Eurosystem portfolios reduced carbon emissions in 2025, with emissions metrics now inflation-adjusted. Green bond share increased, supporting the green transition and transparency efforts.
The European Central Bank (ECB) has published its fourth set of climate-related financial disclosures, providing an overview of the carbon footprint and climate-related risks of the Eurosystem’s monetary policy portfolios, ECB’s foreign reserves, and non-monetary policy portfolios.
Emissions associated with the Eurosystem’s monetary policy portfolios and the ECB’s foreign reserves declined by 13% in 2025, mainly due to portfolio run-off. The Eurosystem remains on track to meet its interim emissions reduction targets for corporate bonds held for monetary policy purposes, supporting the Paris Agreement and EU climate neutrality goals.
As portfolios run off, further emissions reductions depend on issuers reducing their emissions. The ECB is now reporting inflation-adjusted emissions metrics for the first time, correcting for the impact of rising inflation on nominal revenue and providing a clearer view of real decarbonisation progress.
The disclosures also include relative metrics for scope 3 emissions of non-sovereign holdings, representing indirect emissions in a company’s value chain. Data quality improvements have enabled this new reporting, despite remaining limitations.
The ECB’s non-monetary portfolios show continued progress. The staff pension fund’s corporate asset carbon footprint declined further in 2025, aligning with climate targets. The ECB’s own funds portfolio increased its green bond share to 33%, channeling €7.6 billion towards green investments, with a target of 35% in 2026.
The ECB also reports on exposure to sectors with material dependencies or impacts on nature, reflecting its recognition of nature-related risks. It plans to expand these disclosures as data quality and standards improve.
By publishing these disclosures, the ECB and Eurosystem aim to enhance transparency and support efforts to improve climate and nature-related data quality. The ECB remains committed to integrating climate change and nature degradation considerations into its policies and operations to support a sustainable future.
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