Last May 30, together with the Governor's Final Considerations, Bank of Italy raised the curtain up two documents key: the new Management and Sustainability Report and the fourth Report on sustainable investments and climate risks.
La Management and Sustainability Report unifies three previous reports into a more concise and accessible document, offering a clear overview of the Institute's role, the activities carried out and the constant commitment to sustainability, addressing Parliament, Government and the community. The Report on sustainable investments and climate risks, instead, presents the 2024 results in the responsible management of financial portfolios not linked to monetary policy, confirming the alignment of the Bank of Italy with the objectives of the Paris Agreement, the European strategies and the lines shared in the Eurosystem for a more sustainable future.
The new Management and Sustainability Report
The 2024 Management and Sustainability Report offers a clear picture of Via Nazionale's commitment to ensuring the stability of the Italian economic and financial system ed eclecticism, combining innovation and responsibility. The document highlights how monetary policy has been inserted into the context of the Eurosystem, marking a reduction in official rates and a contraction in securities portfolio to €591 billion, following the conclusion of the PEPP and APP programmes. The foreign exchange reserves e in gold reached 254,7 billion, also supported by the increase in the value of gold. On the operational side, the production of 687 million bills and the progress of the project digital euro.
Surveillance, innovation and research
La vigilance has been intensified, with over 14.000 interventions and customer reports, which led to refunds of 54 million euros. The Bank has strengthened systemic risk management by introducing a dedicated capital reserve. In the field of payments, the Target system has seen an increase in volumes and digital innovations, fintech and the role of the Milano Hub as an experimentation centre have been promoted. The Report also highlights the important scientific production with over 200 studies and the management of over 150 million operations for the Public Administration, in addition to the launch of the digital platform ReTes.
ESG Commitment
Within Esg, the document highlights a slight increase (+6%) in emissionscompared to 2023, albeit with a 26% reduction compared to 2019. Since 2013, the Bank has only used energy from renewables and has invested in sustainable mobility and urban forestry projects. The international recognition as the second greenest central bank in the G20 is significant. On the social front, over 190 internships and 242 PCTO courses have been promoted, in addition to investments of 4,9 million euros in social projects. Finally, the report provides data on governance e transparency, with no serious violations and average payment times to suppliers around 10 days.
These results are an integral part of the Strategic Plan 2023-2025, which by mid-2024 has already seen 63% of the intermediate objectives and 42% of the planned activities achieved.
Sustainable Investment and Climate Risks Report
The fourth Report on sustainable investments and climate risks by Bankitalia reaffirms the central role of Esg criteria in the management of wallets financial, which at the end of the year reach a total value of 190,3 billion of euros, excluding monetary policy investments. Investment governance is entrusted to the Board of Directors, supported by committees that define guidelines and update methodologies on sustainability.
ESG Strategy and Responsible Investments
The strategy is based on three pillarsfundamental: increasing ESG transparency among operators and companies, supporting research and the debate on sustainable finance, integrating ESG indicators in the assessment and management of climate risk. In 2024, the Bank strengthened its collaboration with the Mef and promoted training initiatives to delve deeper into the impact of climate risks on the Italian economy.
The investment model follows a “best-in-class”, favoring companies with high ESG performance and credible transition plans, even in the most emitting sectors. selection takes into account historical emissions and decarbonisation targets, with new indicators such as indirect emissions Scope 3, the share of sustainable bonds and exposure to the most impactful environmental sectors.
Key numbers for 2024
From a numerical point of view, the financial portfolio reaches approximately 146,7 billion euros, with an increase of almost 3 billion compared to 2023, mainly in Italian government bonds (83%). The stocks currency are equal to 42,6 billion, while the Supplementary pension fund stands at around 1 billion. The bonds be sustainable represent 5,4% of government bonds, 36,1% of supranational bonds and 6,2% of corporate bonds.
Environmental improvement is important: from 2020 to 2024, the weighted average carbon intensity has fallen by 59% for European equities and by 58% for corporate bonds. Scope 3 indirect emissions are approximately 29 million tonnes of CO2 equivalent, highlighting the importance of also considering indirect impacts in managing climate risk.
Bankitalia, while acknowledging the progress, did not set quantitative targets short- or medium-term reduction, aiming instead for a structural change based on responsible investments, transparency and awareness of systemic effects, in line with the Paris Agreement and European sustainability strategies.
