Eesti Pank is setting itself green development targets
Eesti Pank has formulated targets for the 26th UN Climate Change Conference of the Parties (COP26) in Glasgow so that it can contribute to the goal agreed six years ago in Paris of halting global warming and adapting to change.
“Governments must play the key role in the transition to a low-carbon economy, but climate change and climate policy also have an indisputable impact on prices and so on the core activities of the central bank. It is also important with such large changes for society that the whole of the public sector set an example”, said Governor of Eesti Pank Madis Müller.
Eesti Pank updated its strategy in autumn 2021, adding sustainability measures to it with a clearly laid out action plan. This provided the basis for the climate pledges that Eesti Pank made for the UN conference.
“We have set a target at Eesti Pank of being a responsible organisation and of prioritising the principles of sustainable development”, said Mr Müller. “To that end we are strengthening our capacity at Eesti Pank for analysing climate change and the economic impact of the measures taken to stop it, for the Estonian economy and the financial sector”.
The central bank is also starting to measure and reduce the carbon footprint of its own activities. It has already measured the footprint of its investment portfolio, and the results of this will be published in the first half of next year. It is also reviewing the principles for managing its investment portfolio. The bank is preparing to apply for certification as a green office in the coming year.
“All of our efforts for sustainable development will be reported in future in the Eesti Pank annual report”, promised Mr Müller.
Estonia, together with the other countries of the European Union, has set the goal of achieving climate neutrality by 2050.
Eesti Pank formulated its climate targets in cooperation with the Network of Central Banks and Supervisors for Greening the Financial System (NGFS), which Eesti Pank joined in 2020. The goal of the NGFS is to help achieve the targets set in the Paris climate agreement by analysing risks and economic impacts, raising awareness, and exchanging experience. More than 50 members of the network have published climate commitments for the Glasgow conference.
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