"By having designed a social bond framework, aligned with the ICMA Principles, to finance the Pandemic Crisis Support tool, the ESM has demonstrated vital public-sector leadership in helping to build this extremely important but still considerably underutilised area of ESG-related bonds globally."

“As a PRI signatory, the ESM has prioritised ESG integration across the organisation’s investment activities, designing a responsible investment framework to measure and monitor investments. By committing to ESG integration and promoting sustainable investment practices, the ESM sets an important example for others to foster greater financial stability.”

“The physical and transitional risks of the climate and environmental crises are not hypothetical, but a reality. Analysis confirms that the consequences constitute a material risk to financial stability. European institutions – including the ESM and the ECB – take action in recognition that this is necessary to deliver on their mandate.”

“Climate change is a critical policy challenge that already imposes large economic and social costs on many economies. In the period ahead, it is bound to affect macroeconomic and financial stability through numerous transmission mechanisms, including fiscal positions, asset prices, trade flows, and real interest and exchange rates—so engagement on this issue is vital.”

“Climate change has significant economic and fiscal implications linked not only to physical risks, like natural disasters, but also to those stemming from mitigation and adaptation policies aimed at supporting the transition to climate-neutral economies. The European Commission stands ready to collaborate with the ESM in supporting member states in the event that these risks were to affect financial stability.”

“Climate change poses major risks to the global financial system. To preserve economic stability and seize the new opportunities offered by the green transformation of our economies, the financial community must work closely together. The EIB is delighted to cooperate with ESM and partners from around the world to unlock sustainable finance at scale.”

“We welcome the ESM’s work on the implications of climate change on financial stability, and we look forward to working together to strengthen the resilience of the financial system to climate risks. ESM’s regional reach and strong commitment will support the NGFS’ efforts to accelerate the greening of the financial system.”

“Climate change is a global challenge that requires us to join forces to be part of the global solution. Regional institutions have the responsibility to identify opportunities for our members to facilitate their mitigation of and adaptation to climate change, and transition towards greener economies. By engaging in regular dialogue and sharing of expertise, we can strengthen regional resilience to disasters and secure inclusive ‘climate prosperity’ for all.”