Central Bank Mandates and Nature-Related Financial Risks: Incorporate—Incentivise?

Central banks are investigating nature-related and climate-related financial risksClimate-related financial risks (Myriam Senn) with a view to their relevance for the fulfilment of their tasks. To understand the situation, risk categories, their measurement and potential materialisation are discussed. The article points to the role of central banks based on their mandate. Do they have to incorporate these risks in their monetary policy? Do they have a duty of incentivisation? How far are they accountable or even liable?