Sustainable central banking:clear green water between the Fed and the ECB?

All major central banks recognise that the climate crisis and nature loss pose material threats for the financial system. But central bank mandates and political environments vary. Action on sustainability is a bipartisan issue in Europe, while in the US parts of the Republican Party are leading an anti-ESG campaign that is out of line with science and at odds with a prudent view on financial management. Nick Robins writes that a second phase of sustainable central banking is needed to minimise the environmental threats to banks’ core mandates, as well as the other goals they are set.