HELSINKI (Reuters) - Bank of Finland aims to have a carbon neutral investment portfolio by 2050, the central bank said on Tuesday.
The bank said it anticipates climate change to impact its portfolio and will channel cash flows to low-carbon investments.
"By preparing for the various effects of climate change, we reduce transition and tail risks and thus aim for a better return-to-risk ratio for our investments,” board member Tuomas Valimaki said in the statement.
The bank however added that reaching the goal requires active measures by states since a significant portion of their investment portfolio consists of bonds issued by various countries.
(Reporting by Essi Lehto; Editing by Simon Cameron-Moore)