The European Central Bank has published its fourth set of climate-related financial disclosures, reporting falling emissions linked to its monetary policy portfolios and foreign reserves and a rising share of green bonds in its own funds.
Emissions associated with the Eurosystem’s monetary policy portfolios and the ECB’s foreign reserves declined in absolute terms, with the bank linking the fall mainly to the ongoing run-off of these holdings, which shrank by 13% in 2025, the ECB reported on Monday.
The Eurosystem was on track in 2025 to meet interim emissions reduction targets for corporate bonds held for monetary policy purposes, based on a relative “carbon intensity” measure — a way of comparing emissions to financial activity rather than looking only at total tonnes.
The report added that because the portfolios are running off, the ECB cannot keep “tilting” reinvestments towards issuers with better climate performance, and future emissions reductions will depend on companies reducing their own emissions.
New reporting on inflation and indirect emissions
The ECB reported inflation-adjusted emissions metrics for the first time, saying higher inflation can make emissions progress appear faster by inflating nominal revenues used in carbon-intensity calculations.
The disclosures also included relative metrics for “scope 3” emissions for non-sovereign holdings for the first time — indirect emissions across a company’s value chain, such as those from suppliers and customers — with the ECB saying these make up the bulk of portfolio emissions for those holdings.
In its non-monetary policy portfolios, the ECB said the staff pension fund’s relative carbon footprint for corporate assets fell further in 2025, keeping it on track towards its medium and long-term climate targets.
The share of green bonds in the ECB’s own funds portfolio rose to 33% at the end of 2025, representing €7.6 billion, with the bank aiming to increase the share to 35% in 2026.
The ECB also reported again on exposure to sectors with dependencies or impacts on nature, using sector identification by the Taskforce on Nature-related Financial Disclosures.
