Mainstreaming Climate Action within Financial Institutions
Be strategic when addressing climate change. Institutional commitments to address climate change are demonstrated by senior management leadership, explicit strategic priorities, policy commitments and targets, which allow for the integration of climate change considerations within a financial institution’s lending and advisory activities over time.
Be active in understanding and managing climate risk. Assess your portfolio, pipeline and new investments. Work with clients to determine appropriate measures for building resilience to climate impacts and improving the long-term sustainability of investments.
Promote approaches to generating instruments, tools and knowledge on how best to overcome risks and barriers to investment in low carbon and resilient investments. This may include mobilizing and catalyzing additional financing and developing specialized financing vehicles/products, such as green bonds, risk sharing mechanisms or blended finance. Engage clients and other stakeholders (e.g. rating agencies, accounting firms) on climate change risks and resilience, and share lessons of experience to help further mainstream climate considerations into activities and investments.
Set up operational tools to improve the climate performance of activities. Financial institutions track and monitor indicators tied to climate change priorities, including GHG reporting, lending and advisory volumes supporting green investment, climate related asset allocations, and the institution’s own climate footprint.
Be transparent and report, wherever possible, on the climate performance of your institution, including increases in financing of clean energy, energy efficiency, climate resilience or other climate-related activities and investments. Be transparent and report, wherever possible, the climate footprint of the institutions’ own investment portfolio, and how the institution is addressing climate risk.
The EIB has joined an unprecedented coalition of private and public banks to strengthen climate action. On the sidelines of the COP 21 climate talks in Paris the European Investment Bank and 25 other leading financial institutions from around the world have adopted a set of principles that should improve the effectiveness of climate action and promote greater transparency as well.
Mainstreaming Climate Action within Financial Institutions - Emerging Practices (short version - 32 pages)
* The EIB is pleased to host this page dedicated to the Mainstreaming Principles on behalf of all supporting institutions: African Development Bank Group, Asian Development Bank, Agence Française de Développement, BNP Paribas, Development Bank of Latin America - CAF, Caisse de Dépôt et de Gestion - Morocco, Caisse des Dépôts Group, Crédit Agricole S.A., Development Bank of South Africa, European Bank for Reconstruction and Development, European Investment Bank, FMO Entrepreunerial Development Bank, HSBC, Inter-American Development Bank, International Bank for Reconstruction and Development, International Finance Corporation (IFC), Industrial Development Bank of India, Industrial Development Bank of Turkey, Japan International Cooperation Agency - JICA, KfW Group, Malaysia Credit Guarantee Corporation, Multilateral Investment Guarantee Agency - MIGA, Nordic Development Fund, Proparco, Société Générale, YESBank