PARIS: The European Central Bank should discriminate against assets and collateral it accepts according to their climate risk, ECB policymaker Francois Villeroy de Galhau said at a conference organised by Option Finance on Thursday.

Villeroy, who is also governor of the French central bank, said the ECB had to take into account climate change because its stagflationary nature - pushing up prices while weighing on the economy - challenged the central bank's price stability mandate.