CBM issues its annual Climate-related Financial Disclosures Report (NMPPs) for 2025

The Central Bank of Malta today released its fourth Climate-related Financial Disclosures Report for its non-monetary policy portfolios (NMPPs). This report provides updated information on the climate-related characteristics of the Bank’s investment portfolios for 2025.

The report forms part of the Eurosystem’s coordinated approach to climate disclosures and aims to support transparency and consistency across central banks. It outlines how climate-related considerations are incorporated within the Bank’s investment strategy, portfolio management, and risk management processes.

This year’s disclosures continue to present a range of backward-looking climate metrics, including weighted average carbon intensity (WACI), total carbon emissions (TCE) and carbon footprint (CF). These indicators point to an improved carbon profile over time, with key metrics such as carbon footprint and WACI exhibiting a declining trend since 2021. Forward-looking indicators assessing issuers’ climate targets and transition alignment complement this analysis. The report also reiterates the core metric on corporate exposure to nature-related sensitive sectors, first introduced in the previous edition. Building on earlier disclosures, the Bank is reporting for the first time relative Scope 3 emissions metrics for non-sovereign holdings, thus contributing to a more comprehensive assessment of portfolio emissions and transition risks, while recognising that methodologies and data coverage in this area are still evolving.

During the reporting period, the Bank continued to integrate climate-related considerations within its investment framework. This included maintaining a high degree of alignment of equity exposures with Paris-aligned benchmarks, applying exclusion criteria where appropriate, and increasing holdings of green, social and sustainability bonds, which has more than doubled from 6% in 2021 to 14% by 2025. These measures are complemented by the ongoing monitoring of externally managed funds against established sustainability standards and the continued use of climate-related indicators to support portfolio assessment and investment decision-making.

The Central Bank of Malta will continue to refine its climate-related financial disclosures as data availability, consistency and methodological approaches evolve, recognising the limitations and challenges associated with climate-related data. The Bank, together with the ECB and the Eurosystem, remains committed to further enhancing the scope and comparability of these disclosures, in line with its mandate and evolving best practices.