UPDATE 1-Bank of England to set out greener corporate bond plan - Bailey

(Recasts with Bailey comments on bond-buying plan)

GLASGOW, Nov 3 (Reuters) - The Bank of England will announce in the coming days more about how it will align its corporate bond holdings with its goal for companies to fight climate change, Governor Andrew Bailey said on Wednesday.

“Our approach will use our role as an investor for monetary policy purposes to incentivise firms to take meaningful actions in support of climate transition,” Bailey said in a speech at the COP26 climate summit.

“It will therefore take an important step for central banks in focusing on the impact of the financial system on climate change, as well as vice versa,” he added.

The BoE set out in May its plans to use its 20 billion pounds ($27.3 billion) of corporate bond holdings - a small part of its huge overall debt purchases - to steer companies to cut greenhouse gas emissions faster.

At the time, it said it would give firms time to reduce carbon emissions rather than immediately sell off its holdings in energy companies, power utilities and miners.

Bailey said the BoE next year would intensify its push to make sure financial firms are prepared for the impact of climate change on their business and their balance sheets.

“As we enter 2022, we will be shifting gears in our supervisory approach domestically to ensure firms are identifying and addressing climate-related financial risks,” he said in an event at the United Nation negotiations. ($1 = 0.7322 pounds) (Writing by David Milliken and William Schomberg)