ECB may take “remedial action” against firms failing to meet emissions reduction targets 

The European Central Bank (ECB) plans to set emissions reduction targets for the corporate sector portfolios in the asset purchase programme (APP) and pandemic emergency purchase programme (PEPP). It said it could take “remedial action” if the companies fail to comply. 

In its second set of climate-related financial disclosures, the bank said that by reducing the emissions of its corporate bond holdings, the Eurosystem aims to mitigate the financial risks associated with climate change within its monetary policy operations.