Green bond holdings double to 21.6 billion euros
Green bond holdings at the Banque de France reached 21.6 billion euros in 2025 as the central bank expanded its responsible investment strategy. Equity portfolios maintained a 1.5°C trajectory, while corporate exclusions targeted new fossil fuel extraction.
Doubling green debt and tightening fossil bans
Green bond holdings jumped to 21.6 billion euros by December 31, 2025, up from 10.2 billion euros in 2024 following 11.4 billion euros in net purchases.
Green securities now represent 12.7 percent of monetary base portfolios and 10.7 percent of pension sovereign holdings.
In addition, social and sustainable bond holdings reached 7.5 billion euros.
The central bank maintained a 1.5°C warming trajectory for all equity portfolios and targeted corporate bond alignment by late 2026.
Sectoral exclusions were expanded to disqualify any company developing new fossil fuel extraction projects, alongside a complete ban on thermal coal and unconventional hydrocarbons.
Active voting and biodiversity metrics
The central bank applies a strict ESG filter excluding at least 30 percent of its corporate investment universe under the French SRI standard.
During 2025, the institution and its asset management arm voted at 770 shareholder meetings with a 95 percent participation rate.
They opposed 31 percent of proposed resolutions, including 48 percent of executive pay packages and 43 percent of capital issuances.
Biodiversity footprint reporting was expanded through the Corporate Biodiversity Footprint metric, alongside an 81 million euro commitment to specialized nature funds.
A benchmark for central bank stewardship
The framework sets a rigorous benchmark by pairing strict exclusions with heavy green bond purchases.
Yet minor coal leakages in external funds and complex scope 3 data show ongoing operational hurdles.
The approach proves reserve managers can pursue ambitious environmental goals without compromising portfolio discipline.
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