Why? It enables a financial institution to ensure that climate change is taken into consideration by operational teams across all economic sectors, countries, and business lines. Actions can then be prioritized in those areas with particularly high positive and negative climate impacts, those exposed to climate risks, or where there are business development opportunities.
How? The transition to a low-GHG climate resilient development will have different implications across sectors and countries. Institutions will likely need to conduct forward-looking economic and financial analyses and define investment priorities (and exclusions) in terms of countries, sectors, and business lines. Once identified, these investment priorities will need to be included and contextualized within the respective sector-, country- and business line-related strategies.