BDE portfolios show improved climate quality, green bonds rise
The Banco de España has published its annual report on the climate-related aspects of its non-monetary policy portfolios. The report highlights a continued improvement in the climate quality of its investments, with green bonds accounting for 6.7 percent of the total portfolio in 2025.
Portfolio climate quality improves
The Banco de España's annual report on its non-monetary policy portfolios reveals a continued improvement in their climate quality.
This publication is part of a joint Eurosystem commitment to transparency, aligning with Sustainable and Responsible Investment (SRI) principles since 2021.
The BDE reaffirms its commitment to climate transparency by complying with International Sustainability Standards Board (ISSB) standards, which incorporated the Task Force on Climate-related Financial Disclosures (TCFD) recommendations in 2024.
Investment in green bonds reached 6.7 percent of the total portfolio in 2025, up from previous years, financing projects with positive environmental impact.
This includes 9.4 percent in euro-denominated portfolios and 5.1 percent in non-euro portfolios, demonstrating tangible progress towards a low-carbon economy.
The BDE aims for full alignment with the Paris Agreement and EU climate-neutral goals.
SRI principles guide investment
The Banco de España integrates climate change risks and opportunities into its existing governance, with the Executive Commission approving the financial investment policy.
Since 2019, Sustainable and Responsible Investment (SRI) has been a core principle alongside market neutrality, prudence, professionalism, and efficiency.
The BDE's strategy includes a dedicated SRI portfolio prioritizing assets with positive environmental impacts, such as direct investments in green, social, and sustainable bonds.
It also involves participation in the Bank for International Settlements' (BIS) green investment funds, starting with a dollar-denominated fund in 2019 and a euro-denominated fund in 2021, actively contributing to sustainable finance.
Leading by green example
The Banco de España's consistent progress in decarbonising its portfolios sets a clear example for central banks globally.
Its rising green bond investments and adherence to SRI principles demonstrate a tangible commitment beyond mere compliance.
This proactive stance is crucial for fostering climate-resilient financial systems and influencing broader market practices.