The Banco de Portugal, like most central banks and financial supervisors, has been incorporating environmental, social and corporate governance (ESG) sustainability factors into its policies and internal management.
Environmental concerns and, within these, climate change-related concerns have received greater attention from the Banco de Portugal and central banks in general, as they constitute an important source of risk to the balance sheet of financial institutions and also because of the potential impact on the conduct of monetary policy.
The Banco de Portugal’s approach to ESG sustainability is reflected in the Acting for Sustainability document, which provides an integrated view of the Bank’s position and sets out the guidelines and priorities that will steer its actions in the next four-year period, in line with the Strategic Plan for 2021-25.
Until 2025 the Banco de Portugal will pursue three focus areas to enhance ESG sustainability within its mandate:
- Area 1 – Integrating climate risks into the missions of the Banco de Portugal
- Area 2 – Reinforcing ESG sustainability in internal management
- Area 3 – Promoting ESG awareness among employees and external stakeholders.
The initiatives to be accomplished under each focus area will be defined every year and monitored by the Sub-Committee for Sustainability and Sustainable Finance, the structure that coordinates ESG sustainability-related work at the Banco de Portugal.
