Financial institutions are increasingly recognizing the implications of climate change on their portfolios and balance sheets, and on the financial sector and economy as a whole. National Development Banks (NDBs) play an important role in allocating capital to sustainable green investment by incorporating climate risks and opportunities into their risk framework and operations.
Momentus (formerly IFCL) developed this practical guidebook for NDBs with concrete actionable steps for integrating climate risks and opportunities into their governance, strategy, risk management and metrics/targets, in line with the Financial Stability Board’s Task Force on Climate-related Financial Disclosure (TCFD) recommendations.
The guidebook provides a roadmap for NDBs at different levels of awareness of climate-related financial risks and opportunities. It helps NDBs make better informed financial and strategic decisions. The guidebook was informed by our consultations with NDBs and commercial banks at various stages of their climate risk integration journey, to capture lessons learned and best practices.
