0654 GMT October 17, 2019
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, euronews.com 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.