Bank staff may stay grounded to reduce emissions

THE Bank of England has revealed it is looking at permanently cutting staff air travel as it mulls more ambitious climate change targets under a drive to “practise what we preach”.

Sarah Breeden, the Bank’s executive director for financial stability and risk and lead on climate change issues, said the financial institution was having an “active debate” over plans to make goals on reducing its own carbon footprint more stretching.

Part of this could see the Bank cut back on policymaker trips overseas in favour of virtual meetings even once pandemic restrictions lift.

It comes after the Bank recently beat its climate target nine years early as policymakers were unable to jet around the globe owing to the pandemic.

Its second annual climate-related financial disclosures report showed that on one measure, the Bank’s carbon emissions plunged by 74 per cent, smashing through its initial target to reduce its footprint by 63 per cent by 2030, before reaching net zero by 2050.

Ms Breeden said: “We’ve learned in the pandemic that you can get a lot more done virtually than we ever thought possible. Going back to 2019 levels of travel shouldn’t be necessary, but the answer is not zero either.

“Our target is to reach net zero by 2050 at the latest, but we’re seeing if we can do more.”

She said the Bank was keen to lead by example as it puts climate issues at the heart of its policy, having been handed a new “green” mandate in this year’s Budget.

Ms Breeden, who is the Bank’s executive sponsor for climate change and also sits on its Financial Policy Committee (FPC), said the institution’s recent move to make its £20bn corporate bond portfolio more green was part of a drive to “practise what we preach”.