Financial institutions’ climate role: from commitments to action
Financial institutions, including banking and funding institutions, have a pivotal role to play in driving low-emissions and climate-resilient development. They need to adopt practices that support climate mainstreaming in local financial systems, from committing to climate strategies to improving their climate performance. Support from development finance institutions often proves to be an enabling or even a crucial factor.
Developing climate strategies is a critical first step to defining financial institutions’ contributions to the achievement of global climate objectives. In line with existing guidance (e.g. ISSB standards on climate-related disclosures), financial institutions can address the following areas when committing to climate strategies.
