In 2015, 26 pioneering financial institutions came together at COP21 around five shared voluntary principles that provide guidance to financial sector actors on ‘mainstreaming’ climate change. They recognized the importance of systematically integrating climate change considerations across financial institutions’ strategies, programs and operations to deliver more sustainable short-term and long-term social, environmental and economic outcomes. These voluntary principles remain at the heart of the initiative – a financial institution’s support and acknowledgement of their guidance remains the only requirement to join.
Between 2015 and 2020, the network grew from 26 to more than 50 Supporting Institutions and has become a key resource for the financial community.
In line with the internationally agreed commitments to urgently address the threat of climate change, Mainstreaming Climate in Financial Institutions supports public and private financial institutions to better reflect and manage climate-related risks and opportunities, ensure that climate considerations are disseminated within and across their organizations and align financial flows with the goals of the Paris Agreement.
Building on the pivotal role of finance in driving low greenhouse gas emissions development and resilience to the adverse impacts of climate change, the five voluntary Principles for Mainstreaming Climate Action within Financial Institutions provide a framework to guide them through this process.
Overarching Aims and Objectives
Mainstreaming Climate in Financial Institutions helps financial institutions integrate climate considerations into their different activities and operations.
The Initiative fosters the implementation of the voluntary Principles for Mainstreaming Climate Action by:
- Creating a community of professionals inside public and private financial institutions to share emerging practices including the latest methodologies, tools and their experience of implementing them.
- Leading by example within the broader financial and business community, including by disseminating knowledge and lessons learned.
In 2021, Mainstreaming Climate in Financial Institutions adopted a 5-year strategy presenting the strategic objectives and the impacts that it aims to achieve over the next five years:
Current Areas of Focus
In 2021-2022, the initiative will focus principally on Paris Alignment and Climate Risk Management. In addition, the initiative will continue to address cross-cutting climate mainstreaming themes as well as other topics on an ad hoc basis according to Supporting Institutions’ needs.