The European Central Bank published an ECB Blog post summarising recent enhancements to the European System of Central Banks’ statistical climate indicators. The update expands the sustainable debt securities dataset, refines analysis of the drivers of banks’ portfolio carbon intensity and upgrades physical risk indicators using improved data and modelling. Sustainable bond indicators now include new breakdowns by maturity, interest rate type and currency, showing differing use of non-euro issuance across instrument types. In June 2025, non-euro currencies accounted for 7.3% of green bond issuance and 12.8% of sustainability bond issuance, versus 20.5% for sustainability-linked and 23.7% for social bonds, while non-euro area investors held 34% of euro area residents’ social bonds, 25% of sustainability-linked and sustainability bonds and 18% of green bonds. On bank portfolio metrics, the post highlights that inflation can mechanically reduce carbon intensity when revenues are measured in nominal terms, with 2022 and 2023 showing inflation contributing as much as, or more than, emissions reductions to observed year-on-year declines. For physical risks, newly incorporated hazard data and better identification and valuation of exposed assets lift estimated windstorm losses materially, with expected losses more than tripling under newer datasets and climate models and increasing a further 22% for normalised exposure at risk (NEAR) and 26% for collateral-adjusted exposure at risk (CEAR) when inventories are included. A technical annex and the climate-related indicators webpage provide the full list of changes, underlying methodology and detailed results. Further work is planned to regularly refresh datasets and continue refining methods, including inflation adjustment and additional enhancements for indirect emissions and forward-looking indicators.

Original source View in tracker