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A senior European Central Bank executive has apologized to colleagues for saying new staff should be “reassigned” to ensure they support the ECB's green policies, according to two people who heard the speech.
Frank Elderson told hundreds of European Central Bank banking supervisors at a town hall meeting on Monday that he “deeply regrets” that some of them were hurt by his comments.
The apology underscored the central bank's efforts to repair the damage caused by Elderson's initial outburst, which prompted complaints from ECB staff representatives and members of the European Parliament about an “authoritarian” and “biased” approach on green issues. “Attitude.
The problems began in an internal meeting last month, when Elderson expressed frustration that some new employees knew little about climate change. “Why do we hire people who we have to reprogram because they come from the best universities but still don't know how to spell the word 'climate,'” he said. “I don't want these people anymore.”
The Dutchman, who has played a leading role in the ECB's efforts to combat the financial risks of climate change since joining the ECB's board in late 2020, told Monday's meeting that “some people…” . His comments were hurtful” and “I deeply regret it.”
“I wish I had used other words [because] They really go against what I really stand for,” he added. He went on to say that he believed the ECB should take a “fact-based and science-based” approach to climate change while remaining open to challenges and debate, winning over the audience. applause.
The ECB Staff Committee said in a letter to the board last week that “many colleagues were shocked by the choice of words” and that the idea of ”reprogramming” staff was “in direct contradiction to the democratic values that the ECB and the EU stand for.”
The European Parliament last month called on the ECB to investigate Elderson's initial statements and “quickly address any suspicion of ideological bias” in a resolution adopted in the ECB's annual report.
The ECB, which declined to comment, hopes Elderson's culpability is enough to draw a line under it and does not plan to take any further action.
People who know Elderson believe his initial comments reflected the frustration of some recruits who know little about the scientific facts behind climate change. He said in a memo to employees last week that he didn't mean “reprogramming,” but that employees needed “training.”
While some central banks, such as the Federal Reserve, have taken a cautious approach to green issues, Elderson made them a priority during his tenure as vice-chairman of the European Central Bank's supervisory board, which oversees the euro zone's largest banks.
He recently warned 20 banks that the ECB would impose daily fines if they did not start assessing and responding to climate risks soon. He also called on the European Central Bank to consider a green transition for its 4.7 trillion euro bond portfolio and cheap financing from commercial banks.
The ECB decided in its 2022 strategic review under President Christine Lagarde that addressing the risks posed by climate change falls within its mandate, as long as they do not undermine its main objective of price stability. Some critics believe policymakers' focus on green issues distracts them from containing inflation, which surged to a record above 10% in the euro zone in 2022.
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