BoE to consider climate change parameters while buying corporate bonds after COVID crisis
LONDON (UK) – Once the pandemic has ceased Bank of England would consider bringing in climate change considerations while choosing the corporate bonds it buys, said its governor Andrew Bailey.
This comes in the wake of environmental activists putting pressure on the bank demanding a change in the way it helps firms tide over the coronavirus crisis.
In a statement issued on Wednesday, Bailey said, “When the pressure on our resources abates, we will turn to important issues such as the benchmark for our corporate bond portfolio.”
As part of its bond-buying initiative, the bank has set a 20 billion-pound corporate debt purchase target. This is part of ways to buttress the UK’s economy.
The governor stressed that the coronavirus crisis has not changed the bank’s commitment to fight climate change.
Before the virus outbreak peaked in March, he had said there were strong demands to change the manner in which it purchased corporate bonds based on climate change.
Bailey in his statement made it clear that “hard decisions” had to be taken when it came out with emergency measures to counter the lockdown.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field