DWS encourages central banks to take a more active role in sustainable investing

DWS’s team for ESG Thematic Research has called for central banks to implement responsible investment frameworks for their reserves and pensions by becoming signatories to the Principles for Responsible Investing (PRI). While central banks have been focusing on encouraging corporate and investor transparency as it relates to climate risk, DWS in a research paper published today suggests that central banks should be more active in supporting the transition to low-carbon economies and the UN Sustainable Development Goals through their macro and micro-prudential activities.

Michael Lewis, Head of ESG Thematic Research at DWS writes in the paper: “Climate change has, and will continue to be a key area of focus given the potential risks that extreme weather events, the transition to a low carbon economy and the increasing threat of litigation risk around climate change pose to financial stability. The European Central Bank itself recently stated that central banks themselves should adjust the way they operate by expanding the use of ESG criteria in the build-up and management of their own asset portfolios. The Dutch Central Bank is leading the way by becoming a PRI signatory in early 2019. We encourage other central banks to follow DNB’s example and aim to become leading responsible investors.”

Other ways for central banks to take a more active role include, according to DWS’s ESG Thematic Research team, monetary policy settings, building the evidence base for differentiated capital and reserve requirement ratios such as by supporting the creation of energy efficient mortgages and green bonds, and establishing responsible investment frameworks for central bank balance sheets, reserves and their own pension funds.

The full report is available through Greening the financial system and the role of central banks.

For further information please contact:

Adib Sisani
Tel.: +49 (0) 69 / 910 61960
E-Mail: adib.sisani@dws.com

Claus Gruber
Tel: +49 (0)69 / 910 14381
E-Mail: claus.gruber@dws.com

DWS Group 
DWS Group (DWS), is one of the world's leading asset managers with EUR 692bn of assets under management (as of 30 September 2018). Building on more than 60 years of experience and a reputation for excellence in Germany and across Europe, DWS has come to be recognized by clients globally as a trusted source for integrated investment solutions, stability and innovation across a full spectrum of investment disciplines. Deutsche Bank AG is the majority shareholder of DWS.

We offer individuals and institutions access to our strong investment capabilities across all major asset classes and solutions aligned to growth trends. Our diverse expertise in Active, Passive and Alternatives asset management – as well as our deep environmental, social and governance focus – complement each other when creating targeted solutions for our clients. Our expertise and on-the-ground-knowledge of our economists, research analysts and investment professionals are brought together in one consistent global CIO View, which guides our strategic investment approach.

DWS wants to innovate and shape the future of investing: with approximately 3,600 employees in offices all over the world, we are local while being one global team.

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