Central Bank of Malta publishes its 2024 Climate-Related Financial Disclosures Report

The Central Bank of Malta has today released its 2024 climate-related financial disclosures report, focusing on its euro and foreign currency-denominated non-monetary policy portfolios (NMPPs). This report forms a part of the Eurosystem-wide climate-related disclosures on the euro and foreign currency non-monetary policy portfolios. It aligns with, and even goes beyond, the unified framework established by the Eurosystem. The report is rooted in the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and the Partnership for Carbon Accounting Financials (PCAF).

The report reflects the Bank’s ongoing efforts towards transparency, accountability, and a proactive climate-risk management policy for the Bank’s non-monetary policy portfolios. Key highlights include:

• Increased Green Investments: The Bank has significantly increased its green and thematic bond holdings, which now constitute circa 10% of its assets under management.
• Paris Agreement Alignment: Most of the Bank’s equity funds are now aligned with the Paris Agreement requirements, with actions underway to replicate this alignment in its externally managed corporate bond holdings.
• Strategic Asset Allocation: The Bank continues to diversify its assets under management, incorporating sustainability as a fourth pillar in its Strategic Asset Allocation process. This integration has to date ensured that the increase in holdings does not result in a significant deterioration in most of the Bank’s normalized metrics.

The Central Bank of Malta remains determined in its commitment to achieve long-term carbon neutrality for its NMPPs by 2050, in line with the Paris Agreement and the EU Climate Law, while also fulfilling its other investment objectives.

The 2024 Climate-Related Financial Disclosures Report is available on the Central Bank of Malta’s website.