The central bank of Italy has contracted Moody’s to provide it with ESG “heatmap” services to inform its credit risk assessments for monetary policy.
Banca d'Italia has been integrating ESG into its own investments since last year, when it developed an approach for its equities portfolio which included screening out firms not compliant with the UN Global Compact, and prioritising those with better ESG profiles.
At the time, a spokesperson told RI: “It is important to highlight that the ESG investment criteria are not applied to operations or investments connected with institutional activities, such as the monetary policy”.
But now Moody’s Analytics has been named in a tender valued at more than $900,000; this includes a number of other non-ESG-related services. A spokesperson for Banca d'Italia told RI that “the ESG heatmapping services to be provided by Moody’s are part of a broader contract related [to] credit risk assessment for monet…