Sustainability
Climate change and its effects
The risks posed by climate change affect the entire economy, including the financial sector, both globally and regionally, and even small states like San Marino are not exempt.
Over the last decade, following the Paris Agreement (2015) and the UN Agenda 2030 for Sustainable Development, attention to environmental, social, and governance issues, known as ESG, has been growing among governments worldwide, leading to several interventions to counter climate change and support the rise of so-called sustainable finance.
What is sustainable finance?
Sustainable finance is an approach to investment and financial management that integrates ESG considerations into investment decisions to generate sustainable financial returns in the long term and contribute to achieving sustainable development goals. In other words, this approach aims to reconcile financial objectives with positive impacts on the environment and society.
The Republic of San Marino has joined other countries in adopting the Sustainable Development Goals (SDGs) proposed in the UN's 2030 Global Agenda at the state level and has committed to defining its own national strategy for sustainable development to achieve the set goals.
Why should central banks get involved?
ESG issues and sustainable finance are paramount for central banks as well to achieve their institutional objectives. Climate risks can undermine the stability of the financial system and pose obstacles to monetary policy strategies and the financial soundness of central banks.
Central banks worldwide, within their respective mandates, have thus begun to develop strategies in favour of sustainable choices to address climate change, for example in sustainable finance, environmental risk management, and supporting the green transition.
The Central Bank of the Republic of San Marino also aims to contribute actively to sustainable development and sustainable finance within its functions, starting from its role as an investor, supervising financial intermediaries, and contributing to the dissemination of knowledge and the promotion of broader community action.