Our proposal follows comments from the ECB that central banks should review their bond portfolios and other operations with regards to climate change. The advantages of HLE2G are that it is easy to implement, has an economical approach and has complementary characteristics to the green definition in the forthcoming EU Green Taxonomy.
Most of the highlighted issuers are traded in the main European credit indices, which indicates relevance to the credit market. The proposal has been generated through the ECB’s own disclosure of credit risk holdings as per the eligible marketable asset list, and our own overlay from public information sources.
