Three focus areas for the Riksbank’s sustainability work
Published: 21 February 2025
The Riksbank has divided its sustainability work on climate change into three focus areas. First, the Riksbank is working to identify, analyse and manage climate-related risks. This involves the Riksbank continuously analysing the consequences of climate change and the transition to a sustainable economy. This climate analysis is an integral part of day-to-day operations, as threats to sustainable development affect the Riksbank’s tasks in the same way as other types of risks and shocks. This work is carried out both as part of ongoing business intelligence and through the in-depth analysis of defined areas where risks can potentially arise. It can be done in the Riksbank’s monetary policy drafting process, the financial stability assessment, asset management, the payments area and the Riksbank’s own internal sustainability work.
Second, the Riksbank contributes to increasing knowledge about the effects of climate change on the economy and the financial system. This is done through the Riksbank’s own analyses and through its participation in international working groups. The Riksbank thereby increases its knowledge and contributes to international knowledge. International cooperation is a central element of the work on climate change and is described in the fact box “The Riksbank’s international climate work”. The Riksbank also contributes to other research on the issue, for example by funding research into sustainability issues related to the Riksbank’s activities.
In line with the requirements of the Sveriges Riksbank Act, the Riksbank takes sustainability into account in its asset management. This involves, among other things, incorporating sustainability considerations into the management of the foreign exchange reserves and the Riksbank improving its reporting of the carbon footprint of the financial assets on its balance sheet. To the extent that risks related to sustainability arise in the asset management, these are managed. Knowledge of such risks is particularly important in light of the risks that a disorderly transition would entail, and that the risks arising from the impact of climate change are exacerbated as climate change becomes more evident.
The Riksbank works to continuously cut the greenhouse gas emissions in its own activities and to reduce their negative environmental and climate impact. This work is reported in the Riksbank’s Annual Report.
Through these focus areas, the Riksbank promotes sustainable development within its mandate.
The Riksbank’s focus areas in climate work
FACT BOX – The Riksbank’s international climate work
Climate change is a global problem that requires global cooperation. It is therefore an important part of the Riksbank's sustainability work. A key organisation for international cooperation on sustainability is the Network for Greening the Financial System (NGFS), a voluntary network of central banks and supervisors. The network is not responsible for issuing regulations. Within the NGFS, participants work together and within their mandates to promote analysis, develop scenarios and exchange experiences. The Riksbank has participated in the NGFS since 2018 and, in February 2024, the Riksbank became a permanent member of the NGFS Steering Committee. Finansinspektionen (the Swedish financial supervisory authority) has been a permanent member since 2017 and now the Riksbank and Finansinspektionen participate together in the Steering Committee with a single Swedish vote.
The Riksbank participates in three NGFS permanent workstreams. Within the NGFS Monetary policy workstream, the Riksbank has contributed to a report on how society’s transition to a sustainable economy affects the macroeconomy. In the Scenario design and analysis workstream, the Riksbank participates in the work of designing scenarios that are used to analyse the impact of climate change on the economy. In the Net zero for central banks workstream, the Riksbank shares experiences of internal sustainability work, as well as the measurement and reporting of climate-related financial risks on central bank balance sheets. In addition, the Riksbank participates in a task force on biodiversity and nature-related risks and in two expert networks for research and legal issues.
Furthermore, the Riksbank participates in the Basel Committee’s Task Force on Climate-related Financial Risks (TFCR). The task force focuses on analysing how climate-related risks can create financial risks and developing methodologies to assess climate-related risks. It is currently working to develop harmonised reporting requirements for climate-related risks.[8] See press release: Basel Committee consults on a disclosure framework for climate-related financial risk.
Researchers from the Riksbank also participate in the European System of Central Banks’ (ESCB) research network and the Basel Committee’s research group, both of which have the climate as one of their focus areas.
The Riksbank also contributes to the work of the European Banking Authority (EBA) on climate-related risks, where the working group on transparency has produced disclosure requirements on climate risks for larger banks. The Riksbank participates in the European Central Bank (ECB) cooperation Network on Climate Change and in the group ECB Green, which works to promote sustainability in internal operations. In the Riksbank’s work related to the European Systemic Risk Board (ESRB), climate-related risks are part of the regular risk and policy discussion and the Riksbank participates in the ESRB’s meetings with a particular focus on climate risks.