The European Central Bank has published its fourth annual climate-related financial disclosures for Eurosystem assets held for monetary policy purposes and for the ECB’s foreign reserves. The report covers more than 99.9% of monetary policy holdings, which stood at EUR 3.567 trillion at the end of 2025, and fixed-income foreign reserves of about EUR 40 billion out of total reserves of roughly EUR 117 billion. It shows that corporate bond holdings remained on track in 2025 to meet the Eurosystem’s interim decarbonisation target, while sovereign holdings continued to reduce relative emissions based on the latest available data. The ECB also introduced inflation-adjusted emissions metrics for the first time, alongside additional scope 3 reporting for non-sovereign issuers, to address the risk that standard metrics overstate decarbonisation progress in an inflationary environment. The monetary policy portfolios fell by 13% in nominal terms in 2025 as the asset purchase programme and pandemic emergency purchase programme moved into full passive run-off after reinvestments ended in late 2024. That reduced absolute financed emissions, but also limited the Eurosystem’s ability to further lower the weighted average carbon intensity of corporate portfolios through tilting purchases toward issuers with better climate performance. For corporate bonds, the Eurosystem continues to target an average reduction in weighted average emissions intensity of at least 7% a year from the end of 2021, with 2024 data showing the corporate sector purchase programme remained within that path. Public sector and covered bond portfolios have no formal emissions targets. For foreign reserves, the reported fixed-income holdings in US dollars, Japanese yen and Chinese renminbi are also described as being on an emissions reduction path, while gold, special drawing rights, cash and cash equivalents remain outside the reporting scope because methodological standards are not yet available. The ECB said it will continue annual disclosures, retrospectively update metrics as newer emissions data become available, and assess remedial action on a case-by-case basis if aggregate corporate portfolios deviate from the desired decarbonisation trajectory within the limits of its mandate.
European Central Bank2026-06-15
European Central Bank publishes climate disclosures showing corporate bond portfolios on track for emissions targets and adding inflation adjusted metrics
The European Central Bank has published updated climate disclosures for EUR 3.567 trillion of Eurosystem monetary policy assets and about EUR 40 billion of the ECB’s foreign reserve holdings. The report says corporate bond portfolios remained on track to meet interim emissions reduction targets and introduces inflation-adjusted emissions metrics for the first time. It also reflects the limits of further portfolio tilting now that APP and PEPP reinvestments have ended and the portfolios are in full run-off.