Skip to content

2021-2022 Report – Mainstreaming Climate in Financial Institutions

At COP27 Mainstreaming Climate in Financial Institutions released its biennial report, presenting outcomes of 2021-2022 exchanges between professionals from financial institutions on climate mainstreaming.

Key points
  • Setting a climate finance target remains a first major milestone in the climate mainstreaming journey,
  • Over the past two years, a growing number of FIs committed to align all their activities with climate goals,
  • Alignment commitments and approaches have mostly focused on the mitigation goal of the Paris Agreement (e.g.:“net zero” commitments)
  • Coalitions are starting to develop principles to assess the alignment of portfolios with the adaptation objectives and the contribution to adaptation.
  • Approaches for assessing the alignment of clients are being developed
  • Transition and resilience plans are more and more considered as important tools to develop an engagement strategy with clients
  • Development finance institutions are providing their counterparts technical assistance and access to resources on climate mainstreaming, climate risk management and Paris alignment
  • Climate strategies and sector policies have been revised by FIs (increasing support for mitigation and adaptation and aligning all of their operations with the Paris Agreement goal),
  • Other aspects of sustainable development are being mainstreamed together with climate change (such as biodiversity or gender considerations).