The Bank of Finland has pledged to have a carbon-neutral investment portfolio by 2050 at the latest.
The central bank of Finland expects to achieve the carbon-neutrality target for its equity and corporate bond investments earlier than its entire portfolio.
The national monetary authority plans to publish intermediate targets, including a restriction in the investments in fossil fuel companies.
Earlier this year, the Bank of Finland agreed with other European banks to have a common stance for reporting climate risks.
“The Bank of Finland is involved in combating climate change. By preparing for the various effects of climate change, we reduce transition and tail risks and thus aim for a better return-to-risk ratio for our investments.
“In practice, combating climate change requires channelling cash flows to low carbon investments, which also reduces the portfolio’s carbon footprint.”