Signage is seen outside the European Central Bank (ECB) building, in Frankfurt, Germany, July 21, 2022. REUTERS/Wolfgang Rattay
FRANKFURT (Reuters) -The European Central Bank is already factoring climate-related risk into the assessment of collateral used to borrow money from the bank but this rarely leads to credit rating changes, a blog post published by the ECB said on Friday.
The ECB's 2021 climate action plan made the integration of climate risks into its collateral framework a key priority and the bank expects climate risk to be factored into credit ratings of assets posted by banks when they borrow from the central bank.
