. a., a. geis, a. juskaite and l. v. cruz ( 2018 ), the impact of the corporate sector purchase programme on corporate bond markets and the ﬁnancing of euro area non - ﬁnancial corporations, european central bank, economic bulletin, no. ( number ) 3 / 2018, pp. ( pages ) 6684. 16. weidmann, j. ( 2020 ), too close for comfort? the relationship between monetary and ﬁscal policy, speech delivered at the omfif virtual panel on 5 november 2020. https : / / www. bundesbank. de / en / press / speeches / combating - climate - change - what - central - banks - can - and - cannot - do - 851528 7 / 8 20 / 11 / 2020 combating climate change – what central banks can and cannot do | deutsche bundesbank 17. a. alesina and l. h. summers ( 1993 ), central bank independence and macroeconomic performance : some comparative evidence, journal of money, credit and banking, vol. ( volume ) 25, pp. ( pages ) 151 - 162. https : / / www. bundesbank. de / en / press / speeches / combating - climate - change - what - central - banks - can - and - cannot - do - 851528 8 / 8

hypothesis, prices in ﬁnancial markets should reﬂect all available information. so it could also be the case that investors are lacking important information. while advances have been made in the disclosure of greenhouse gas emissions by a number of companies, especially large ones, ﬁnancial markets are still lacking timely information on the carbon footprint of many issuers of securities. [ 9 ] academic evidence suggests that disclosure of corporate greenhouse gas emissions reduces investor uncertainty, which is rewarded in the form of a lower cost of capital. [ 10 ] this underscores how transparency is key for ﬁnancial markets to fulﬁl their role and channel funds towards climate - friendly investments. the ﬁnancial sector is also where central banks come into play. 3 the role of the central bank https : / / www. bundesbank. de / en / press / speeches / combating - climate - change - what - central - banks - can - and - cannot - do - 851528 3 / 8 20 / 11 / 2020 combating climate change – what central banks can and cannot do | deutsche bundesbank i believe that every one of us should be doing more about climate change. clearly, it is also up to central banks to do their part. and this certainly goes beyond reducing their carbon footprint as institutions. climate change, and action to mitigate it, affect central banks in several ﬁelds. [ 11 ] above all, our task of maintaining price stability could become more challenging. both climate change and climate policies can have an impact on key macroeconomic variables such as prices, interest rates, output, and employment. [ 12 ] it is of vital importance for central banks to gain a full understanding of such effects and their implications for monetary policy. therefore, we need to embed climate - related risks and developments in our monetary policy analyses and update our analytical and forecasting toolkits accordingly. moreover, climate change, and action to mitigate it, can give rise to ﬁnancial risks that could affect not just individual banks or investors but the entire ﬁnancial system. in our role as prudential supervisors and guardians of ﬁnancial stability, we have to ensure that credit institutions adequately incorporate ﬁnancial risk into their risk management, including those ﬁnancial risks that are climaterelated. yet, central banks also have to practise what they preach. we owe it to european taxpayers to keep the ﬁnancial risks that arise from our monetary policy operations in