ECB Seeks to Identify Polluters in Push for Green Finance System

The European Union should identify companies that harm the environment so that banks and asset managers can better handle the risks stemming from climate change, according to the European Central Bank.

The ECB threw its weight behind the controversial idea in a submission to the European Commission, which is seeking input on how to advance its push to green the financial system. The bloc has so far focused on identifying sustainable activities only, which means authorities and finance firms are left dealing with a data gap, according to the Frankfurt-based institution.

“Both banks and supervisors are currently faced with ...