Greening the present to decarbonise the future: an analysis of Italian banks' decarbonisation strategies

Cristina Angelico (), Valeria Lionetti () and Ludovico Ridi ()
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Cristina Angelico: Bank of Italy
Valeria Lionetti: Bank of Italy
Ludovico Ridi: Bank of Italy

No 939, Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: This paper offers an overview of Italian credit institutions' current strategies supporting their longer-term decarbonisation commitments. It exploits detailed survey-based information on the objectives and strategies of large and smaller banks. According to the data, the Italian banking system is starting to set medium to long-term decarbonisation strategies, especially for credit portfolios, by evaluating borrowers' climate ambitions and supplying green lending products. Larger institutions lead this process, but small institutions are also moving forward on this front. Our evidence suggests that banks' efforts go beyond regulatory requirements as even institutions outside the scope of forthcoming regulations are considering setting decarbonisation objectives. By doing so, institutions will enhance their business resilience, ensuring they can withstand and adapt to the evolving risks and opportunities presented by climate change and the transition to a sustainable economy.

Keywords: banking and finance; decarbonisation strategies; transition plans; regulation and supervision (search for similar items in EconPapers)
JEL-codes: G21 G28 K20 (search for similar items in EconPapers)
Date: 2025-06
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