In 2024, the Riksbank started work on developing the management of the gold and foreign currency reserves. The work focused on the management model and decision-making process for the composition of the reserves, with the aim of taking better account of the balance sheet as a whole and the need for income generation. The work also included how to integrate sustainability into the asset management in the future.

The Riksbank clarifies that the foreign currency reserves shall only consist of bonds issued by countries that have joined the Paris Agreement, in accordance with the Riksbank's previous practice. At the same time, the reserves need to contain assets in the currencies that may be needed for the Riksbank to fulfil its tasks, for example in a crisis. The sustainability of the foreign exchange reserves therefore depends on whether the countries whose currencies must be included in the reserves comply with international agreements and contribute to the transition. For example, the US left the Paris Agreement in January 2025. However, as the dollar is necessary for the Riksbank's preparedness and to maintain price and financial stability, the Riksbank will continue to hold US government bonds in its foreign exchange reserves.

The Riksbank has previously decided to invest only in bonds issued by Australian states and Canadian provinces whose footprint is equal to or lower than the respective country’s level. The footprint is measured here as portfolio weighted average carbon intensity. This decision stands.

The Riksbank invests in bonds with different sustainability classifications, as they are part of the market in which the Riksbank operates.^[40] This includes bonds labelled according to the International Capital Market Association's (ICMA) guidelines for green, social, sustainable and sustainability-linked bonds. The Riksbank has no specific objective for sustainability-classified bonds. They are included in the asset management because they are part of the market, just like other bonds. These investments are made on the condition that the bonds meet requirements regarding liquidity, return and risk. The Riksbank reports the proportion of these bonds in the foreign exchange reserves.

Expanded reporting of emissions for foreign exchange reserve assets

Since 2022, the Riksbank has reported an emissions metric for the foreign exchange reserves, calculated as portfolio weighted average carbon intensity.^[41] See E. Brattström and R. Gajic (2022), “The carbon footprint of the assets in the Riksbank’s foreign exchange reserves”, Economic Commentaries no. 4, Sveriges Riksbank. As of 2025, reporting will be expanded with three new metrics: total carbon emissions, carbon footprint and carbon intensity. The calculation method of the emissions metrics is based on the recommendations for central banks developed by the NGFS, which in turn are based on recommendations from the Task Force on Climate-related Financial Disclosures (TCFD).

Previously, the Riksbank based its calculation of emission metrics solely on the production-related emissions of the issuers. This metric did not include the effects of land use, land-use change and forestry (LULUCF). As of 2025, the Riksbank is expanding its reporting to include these aspects, as well as consumption-related emissions linked to domestic consumption and emissions from government institutions.

To enable comparisons between countries, regions and over time, emissions are related to various indicators of economic activity. Examples of such indicators are gross domestic product (GDP) for production emissions, population for consumption emissions and government expenditure for government emissions. When land use (LULUCF) is included in the calculations, net uptake of carbon dioxide can reduce total production emissions. This means that emissions are reported as lower compared to when land use is not taken into account. For detailed information on the emissions metrics, see the fact box Emissions metrics for the foreign exchange reserves.

The carbon footprint of the foreign exchange reserves

On 31 December 2024, portfolio weighted average carbon intensity was measured at 217.2 tonnes of carbon dioxide equivalents per million dollars. Table 1 shows the outcome of the four emissions metrics for bonds issued by countries and regions in the foreign currency reserves as at 31 December 2024, when they accounted for 92.7 per cent of the total market value of the Riksbank's foreign currency reserves.^[42] The following assets are not included in the calculations due to limited access to data or methodological guidance: physical gold (the gold reserve), cash and cash equivalents, bonds issued by intergovernmental organisations and financial derivatives (currency swaps and futures). The metrics have to be interpreted with some caution as the holdings that are included are given a higher weight in the calculation than if all holdings in the reserves had been included.

Note. In the calculations, emissions data from 2021 are used in the absence of more recent data. Production-related emissions are reported by the countries themselves, while data on consumption-related and government emissions are calculated by data providers Carbon4 Finance and ISS ESG respectively. All emission metrics are calculated on the basis of the nominal values of the bonds.
Sources: Carbon4 Finance, ISS ESG, UNFCCC, World Bank, Australian Bureau of Statistics, Statistics Canada and the Riksbank's own calculations.

Chart 4 shows the development of the portfolio weighted average carbon intensity as of 31 December 2024 and the three preceding years. The footprint of the foreign exchange reserves primarily depends on how much the Riksbank owns of a country's or region's securities and the country's or region's carbon intensity (the level of emissions in relation to GDP per issuer). Developments over the past four years are partly due to the share of holdings in US dollars having increased in 2023 while the share of assets in euros decreased, which together contributed to increasing the footprint. Over the years, the footprint for Australia has decreased, which has helped to reduce the footprint for that part of the reserves. The outcome is also affected by GDP figures and by the fact that only certain holdings are included in the calculations. The Riksbank continues to develop and refine its methods for monitoring and reporting the footprint over time. Over the period, the share of assets in US dollars has increased, which has contributed to a slight increase in the footprint since 2023.

Tonnes of carbon dioxide equivalents per million US dollars

The proportion of bonds with sustainability classifications in the foreign exchange reserves

Bonds with different sustainability classifications are defined here as bonds marked according to the guidelines applied by the International Capital Market Association (ICMA). This includes green, social, sustainable and sustainability-linked bonds. The Riksbank has no specific objective of owning a certain proportion of these bonds; instead the holdings mainly reflect the market’s supply. At the end of 2024, bonds with different sustainability classifications accounted for 1.9 per cent of the foreign exchange reserves.