Bank of England is greening its corporate asset purchases: a reference approach

The Bank of England's proposed strategy to decarbonize its Corporate Bond Purchase Scheme (CBPS) is based on three principles: incentivizing net zero action through engagement, leading by example, and ratcheting up requirements over time. Reclaim Finance argues that this approach is flawed due to an over-reliance on engagement over divestment, a lack of clear timelines and resources for monitoring company progress, and insufficient exclusions of oil and gas companies. The author recommends that the Bank exclude companies involved in new fossil fuel projects or those deriving majority revenues from fossil fuels, and calls for the immediate integration of scope 3 emissions for carbon-intensive and finance sectors.

• The Bank of England's proposed "greening" approach for its Corporate Bond Purchase Scheme (CBPS) is built on three principles: incentivizing companies to reach net zero primarily through engagement, learning from and leading other investors, and incrementally increasing requirements over time.
• The proposed strategy is criticized for over-estimating the Bank's ability to influence companies through engagement and for failing to provide clear deadlines, short-term targets (two and five years), or a description of the internal resources and tools available to execute effective pressure.
• Reclaim Finance argues that the Bank of England should expand its divestment strategy beyond coal to include companies involved in new fossil fuel projects, those whose majority of revenues come from fossil fuel activities, or those significantly involved in unconventional oil and gas.
• The document asserts that scope 3 emissions must be integrated immediately for the finance sector and all carbon-intensive activities, noting that in the finance sector, scope 3 emissions can be approximately 700 times greater than scope 1 and 2 emissions.

APA

admin (2021). Bank of England is greening its corporate asset purchases: a reference approach. Reclaim Finance. https://reclaimfinance.org/site/en/2021/06/28/bank-of-england-is-greening-its-corporate-asset-purchases-a-reference-approach/

Chicago

admin. Bank of England is greening its corporate asset purchases: a reference approach. Reclaim Finance, 2021. https://reclaimfinance.org/site/en/2021/06/28/bank-of-england-is-greening-its-corporate-asset-purchases-a-reference-approach/.

Wikipedia

{{cite press release |last1=admin |title=Bank of England is greening its corporate asset purchases: a reference approach |publisher=Reclaim Finance |date=28 June 2021 |url=https://reclaimfinance.org/site/en/2021/06/28/bank-of-england-is-greening-its-corporate-asset-purchases-a-reference-approach/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{admin2021bank, author = {admin}, title = {{Bank of England is greening its corporate asset purchases: a reference approach}}, publisher = {Reclaim Finance}, year = {2021}, month = jun, url = {https://reclaimfinance.org/site/en/2021/06/28/bank-of-england-is-greening-its-corporate-asset-purchases-a-reference-approach/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }