Net zero for central banks

Overview

The NGFS encourages central banks to lead by example. Without prejudice to their mandates and status, this includes integrating sustainability factors into central banks corporate operations.

The NGFS created the Workstream “Net Zero for Central banks” to provide a forum for NGFS members to discuss ESG issues and approaches related to (i) sustainable and responsible investment, (ii) central banks’ own climate-related and environmental disclosure, (iii) the greening of central banks’ corporate operations, as well as (iv) transition planning for central banks. By sharing knowledge and best practices, the Workstream aims at helping its members address practical challenges related to the transition to a net zero economy, and to better manage climate-related and environmental risks.

From 2024 to 2026, it will explore the following topics:

Sustainable and Responsible Investments (SRI): some of the projects involve analysing the risks and opportunities of stewardship practices for central banks, exploring enhancements to climate-related metrics for portfolio management, and integrating biodiversity and nature-related considerations into SRI practices;
Central banks’ own climate-related disclosure: the group supports its members in the development of their climate-related disclosure, and explores how nature-related considerations could be included in central bank disclosures;
Greening of central banks’ corporate operations: the group serves as an internal forum through which members can exchange best practices and experiences on the greening of their corporate operations. It explores challenges and opportunities relating to carbon contributions and nature- and biodiversity-related aspects;
Transition planning for central banks: the group supports central banks in their early efforts towards transition planning.