News ID: 252975
Published: 0818 GMT May 18, 2019

Italy central bank to spurn firms that don't go green

Italy central bank to spurn firms that don't go green

The Bank of Italy plans to adopt investment criteria which reward companies that take action on climate change, joining other central banks, commercial banks and fund managers in ratcheting up pressure on boardrooms to go green.

The criteria will apply by end-June to the Italian central bank's roughly eighth billion euros ($8.9 billion) in shareholdings and later be extended to its one billion euros in corporate bond holdings, the bank said in a statement posted on its web site, wrote.

The criteria exclude firms that do not adopt UN principles on human rights, labor, the environment and anti-corruption.

The Bank of Italy is a member of the Network for Greening the Financial System, a global financial group which treats climate change as a threat to financial stability.

An independent adviser will help the Bank of Italy to spot the best-in-class companies in terms of environmental, social and governance standards, the bank said.

As a result of the new criteria, greenhouse gas emissions from companies within its portfolio will fall 23 percent, and energy and water consumption will drop 30 percent and 17 percent respectively.

The central bank did not give a timeframe for when the new investment criteria would apply to corporate bond holdings.

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