ECB greening of the credit market to start in 2022

En bref

Climate change and the need for greening the economy has become a top priority issue in politics. The EU addressed it in the NextGenerationEU Recovery Plan and the latest European Green Deal proposals.
Focal Point

Highlights:

  • The ECB’s new strategy puts climate action into the focus. Climate change will be incorporated in economic forecasts and stress tests. The ECB targets to abandon its market neutrality with respect to CSPP purchases by 2022 and to include climate risks into the collateral framework.
  • While these measures are in line with expectations but disappointed with the late application of carbon filters.
  • On credit markets, the climate strategy of the ECB will start with enhanced disclosures before including climate related rules on risk assessment, collateral rules and CSPP purchases starting in H2 2022.
  • With the ECB being the largest investor in the European credit market, such shifts in policy will undoubtedly impact valuations, amplified by private investors that are trying to minimize the carbon footprint in their credit portfolios.
  • We expect the move to be the strongest within Utilities, Energy and “Dirty Manufacturing”.

Read the full publication below

ECB greening of the credit market to start in 2022
PDF

Also interesting

Picture

© Generali Investments, tous droits réservés. Ce site internet est publié par Generali Investments et est considéré comme une communication marketing et une promotion financière liée aux produits et services des sociétés du groupe Generali suivantes : Generali Investments Partners S.p.A. Società di gestione del risparmio, Generali Insurance Asset Management S.p.A. Società di gestione del risparmio, Generali Investments Luxembourg S.A. et Generali Investments Holding S.p.A. (ci-après dénommées ensemble Generali Investments). En outre, le site peut contenir des communications de marketing et de promotion financière de produits et services de sociétés faisant partie de la plate-forme Multi-Boutiques coordonnée par Generali Investments Partners S.p.A. Società di gestione del risparmio, et en particulier de Generali Global Infrastructure, Sycomore Asset Management, Aperture Investors LLC, Plenisfer Investments SGR, Lumyna Investments et Generali Real Estate S.p.A. Società di Gestione del Risparmio.