ECB and Eurosystem portfolios continue to reduce carbon emissions in 2025

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, the ECB’s foreign reserves, and non-monetary policy portfolios, including its staff pension fund and own funds portfolio.

Emissions associated with the Eurosystem’s monetary policy portfolios and the ECB’s foreign reserves declined by 13% in 2025, mainly due to the ongoing run-off of these portfolios. The Eurosystem remains on track to meet its interim emissions reduction targets set on a relative carbon intensity basis for corporate bonds held for monetary policy purposes, supporting the Paris Agreement and EU climate neutrality goals.

Further emissions reductions will depend on issuers taking action to reduce their emissions, as the run-off limits the ECB’s ability to tilt reinvestments toward issuers with better climate performance.

To enhance transparency, the ECB is reporting inflation-adjusted emissions metrics for the first time. These metrics correct for the effects of inflation on portfolio revenue and provide a more accurate measure of real decarbonisation progress. The ECB also disclosed relative metrics for scope 3 emissions of non-sovereign holdings, reflecting improvements in data quality and covering indirect emissions in a company’s value chain.

The ECB’s non-monetary portfolios show continued progress. The relative carbon footprint of corporate assets in the ECB’s staff pension fund declined further in 2025, supporting long-term climate targets. The share of green bonds in the ECB’s own funds portfolio increased to 33% at the end of 2025, amounting to €7.6 billion, with a target to reach 35% in 2026.

Additionally, the ECB reports on exposure to sectors with material dependencies or impacts on nature, in line with the Taskforce on Nature-related Financial Disclosures. The ECB aims to expand its disclosures on nature-related risks as data quality and reporting standards improve.

By publishing these disclosures, the ECB and Eurosystem aim to promote 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.

For media inquiries, contact Clara Martín Marqués at +49 69 1344 17919.