Network for Greening the Financial System publishes interview on Danmarks Nationalbank’s integrated climate risk approach and green bond issuance under the European Green Bond Standard

The Network for Greening the Financial System published an interview with Danmarks Nationalbank Governor Signe Krogstrup setting out how the central bank integrates climate-related considerations across its core tasks and operations and how it uses NGFS work in its domestic climate risk agenda. Danmarks Nationalbank joined the NGFS in April 2019 and describes climate risks as being prioritised alongside other key risks such as cyber security and geopolitics. Its climate work spans analysis and data collection, responsible investment of foreign exchange reserves while maintaining the fixed exchange rate policy and financial stability priorities, and internal operational measures including annual reporting on the climate footprint of portfolios and operations. The interview highlights published work on flooding risks, energy price volatility, and the economic and financial effects of carbon pricing, as well as statistics on carbon emissions financed by the Danish financial sector’s investments. In its separate role as Denmark’s debt manager, Danmarks Nationalbank issues green bonds for the Kingdom of Denmark and notes that Denmark became the first sovereign to issue under the European Green Bond Standard (EuGB) in September. The central bank also points to active participation across NGFS workstreams, including contributions to NGFS guidelines on climate-related disclosures developed by the Workstream on Net Zero for Central Banks.