Reclaim Finance’s response to the BoE “Options for greening the CBPS” consultation

Reclaim Finance responds to the Bank of England's consultation on the Corporate Bond Purchase Scheme (CBPS), urging the Bank to prioritize the exclusion and divestment of fossil fuel assets to mitigate climate-related financial risks. The organization argues that engagement is often ineffective for high-carbon companies and recommends that the Bank set ambitious, short-term portfolio targets, integrate scope 3 emissions, and implement a heavy negative tilt strategy. Reclaim Finance further suggests that the Bank should lead the market in climate risk management by increasing capital requirements for fossil fuel exposures and expanding its environmental focus to include nature-related financial risks.

• The Bank of England should prioritize the exclusion and divestment of companies involved in fossil fuels, particularly those with no credible transition plans, as engagement is often ineffective for companies whose interests oppose the transition.
• Fossil fuel exclusions are justified by data from the IEA, UN Production Gap report, and Carbon Tracker, which indicate that new fossil fuel production is incompatible with net-zero goals and that 84% of explored reserves must remain unexploited to limit warming to 1.5°C.
• To manage climate-related risks and avoid 'stranded assets', the Bank should implement strict eligibility requirements, including the use of the Global Coal Exit List and a forthcoming Global Oil and Gas Exit List.
• The Bank should integrate scope 3 emissions into its accounting immediately, especially for the finance and fossil fuel sectors, as these emissions often represent the vast majority of total greenhouse gas emissions.
• Portfolio targets should focus on rapid alignment through annual objectives for weighted average carbon intensity (WACI) and absolute emissions, while avoiding the use of carbon offsets or scenarios relying on unproven technologies like carbon capture.
• A 'heavy' negative tilting strategy should be prioritized over a 'light touch' approach, as high carbon footprints are linked to higher financial risks.
• The Bank of England should expand its environmental remit beyond climate change to include nature-related financial risks, such as biodiversity loss, and increase capital requirements for fossil fuel exposures to protect financial stability.

APA

Reclaim Finance (n.d.). Reclaim Finance’s response to the BoE “Options for greening the CBPS” consultation. https://reclaimfinance.org/site/wp-content/uploads/2021/06/RF-consultation-response-to-BoE-CBPS-June-2021.pdf

Chicago

Reclaim Finance. Reclaim Finance’s response to the BoE “Options for greening the CBPS” consultation. n.d. https://reclaimfinance.org/site/wp-content/uploads/2021/06/RF-consultation-response-to-BoE-CBPS-June-2021.pdf.

Wikipedia

{{cite press release |author=Reclaim Finance |title=Reclaim Finance’s response to the BoE “Options for greening the CBPS” consultation |url=https://reclaimfinance.org/site/wp-content/uploads/2021/06/RF-consultation-response-to-BoE-CBPS-June-2021.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{reclaimfinancendreclaim, author = {{Reclaim Finance}}, title = {{Reclaim Finance’s response to the BoE “Options for greening the CBPS” consultation}}, publisher = {Reclaim Finance}, url = {https://reclaimfinance.org/site/wp-content/uploads/2021/06/RF-consultation-response-to-BoE-CBPS-June-2021.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }