12/06/2025 09:30:00

The Central Bank of Malta releases its annual Climate-related Financial Disclosures Report

The Central Bank of Malta today released its third annual Climate-related Financial Disclosures Report for its non-monetary policy portfolios, underscoring its ongoing commitment to transparency, sustainability and alignment with global climate objectives. The report highlights the Bank's progress in integrating climate risk into its investment strategies and advancing toward carbon neutrality by 2050, in line with the Paris Agreement and the EU climate targets.

The disclosures adhere to the Task Force on Climate-related Financial Disclosures (TCFD) guidelines and align with the Partnership for Carbon Accounting Financials (PCAF) standards, ensuring rigorous and consistent reporting. The Bank also supports the Eurosystem's unified approach to climate-related disclosures.

The Bank has increased its investments in equity funds tracking Paris Aligned Benchmark (PAB) Indices, as well as in green, social and sustainable bonds. By transitioning equity holdings to PAB-tracking funds and applying PAB exclusions to its corporate bond portfolio, the Bank has further reduced the climate-related risks and environmental impact of its non-sovereign exposures, even as holdings have increased. Investment in sovereigns with lower emissions have also contributed positively to the portfolio's climate profile.

For the first time, the Bank has disclosed Scope 3 emissions related to non-sovereign holdings in its non-monetary policy portfolios (NMPPs), alongside a core metric on corporate exposure to nature-related sensitive sectors. These disclosures enable the Bank to monitor progress toward long-term decarbonisation targets and provide greater accountability to stakeholders.

The Central Bank of Malta remains steadfast to progressively align its assets under management with the goal of achieving carbon neutrality by 2050. The Bank will continue to improve the robustness and breadth of its climate-related disclosures, working closely with the European Central Bank and Eurosystem partners to address data challenges and support informed, sustainable investment decisions.

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