Central bank mandates, sustainability objectives and the promotion of green finance

This article examines how addressing climate-related risks and supporting mitigation adaptation policies fit into central bank mandates. We conduct an analysis of mandates objectives using the IMF's Central Bank Legislation Database compare these to sustainability-related banks have adopted in practice. Out 135 banks, only 12% explicit sustainability mandates, while 40% are mandated support government's policy priorities, which mostly include goals. However, given that climate can directly affect banks' traditional core responsibilities, all institutions ought incorporate physical transition their frameworks safeguard macro-financial stability.