Reporting the carbon footprint increases transparency of climate-related risks

For the Riksbank, it is important to understand how climate change affects the value of its own financial assets and how climate-related financial risks can be taken into account in asset management. This Commentary addresses the Riksbank’s initial work on calculating, analysing and reporting the carbon footprint^[2] In this Commentary the term carbon footprint is used interchangeably when referring to the measure used: carbon intensity for individual countries and regions and weighted average carbon intensity (WACI) for the whole portfolio. for the assets in the foreign exchange reserves, which could be a source of financial risk on the Riksbank’s balance sheet. The Riksbank thereby wishes to contribute to increased transparency and a deeper analysis of climate-related reporting.

Published: 12 April 2022