Reserve assets still rarely screened on ESG grounds
Bonds and equity indexes remain widely favoured for benchmarking
Central banks have varied ways of screening reserve assets, but approaches based on environmental, social and governance (ESG) criteria remain rare, the Reserve Benchmarks 2024 finds.
Only one in four central banks (25%) say they screen assets on the basis of ESG criteria. Twenty (37.7%) say they benchmark assets based on bespoke indexes. More than three-quarters (77.8%) mention benchmarking on publicly available bond and equity indexes.
Central Banking has tracked reserve managers’ asset
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