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💰 Central Bank of Cyprus advances sustainable investment practices in 2025 with increased green bond holdings

The Central Bank of Cyprus (CBC) has further enhanced the sustainability of its non-monetary policy portfolios in 2025, reporting an increased focus on climate-related risk reduction and integration of environmental considerations into its investment and risk monitoring processes. By the end of May 2025, the bank's total currency reserves rose to €1.77 billion, marking a €153 million increase from the previous year.

Notably, the CBC boosted its holdings in green, social, and sustainability bonds to 15% of total reserves, up from 10% in 2023, totaling €268 million. The dedicated green bond portfolio expanded by €38 million, reaching €93 million. The bank also introduced scope 3 emissions metrics for non-sovereign issuers, supporting its commitment to transparency and decarbonization aligned with the Paris Agreement and EU climate goals.

Governance improvements include the establishment of a Sustainability Committee at the Board level to oversee strategic sustainability objectives. The CBC employs a scoring system that favors investments in sovereign issuers with stronger sustainability profiles, while acknowledging that progress largely depends on government actions. Future plans involve enhancing risk management and climate scoring tools as more comprehensive data becomes available.

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