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Principle 4: IMPROVE climate performance

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.

Principle 4 emphasizes the need for a financial institution to have the appropriate operational tools and systems to track, monitor and incorporate climate considerations into day-today operations. Without such tools, an institution may be unable to understand, assess and quantify its climate performance. Operational tools and results frameworks to assess performance are an important first step to understanding, and ultimately improving overall institutional performance related to climate change.

 

Implementing Principle 4 may include the following actions:

  • Assessing and monitoring climate performance
    • Measuring and tracking the volume or share of activities and investments reducing greenhouse gas emissions
    • Measuring and tracking the volume or share of activities and investments building climate resilience
    • Measuring the real-world impact of climate-related activities and investments
    • Measuring and tracking ‘unaligned’ activities and investments
    • Assessing the alignment of all activities and investments against national and international climate goals
Report

How can net zero finance best drive positive impact in the real economy

Tools and guidance

Foundations for science-based net-zero target setting in the financial sector

Report

The Future of Investor Engagement

Report

The Glasgow Financial Alliance for Net Zero

Case study

BDMG Sustainable Bonds

Tools and guidance

Guidance on Metrics, Targets, and Transition Plans

Report

Operationalization Framework on Aligning with the Paris Agreement

Report

Paris-alignment methodologies for banks: reality or illusion?

Report

Strategic framework for Paris Alignment

Report

Global GHG Accounting and Reporting Standard for the financial industry

Report

Public Bank Climate Tracker

Report

From aligning with Paris to the SDGs

Report

Climate change and development bank project cycles

Report

Credit Portfolio Alignment: An application of the PACTA methodology

Report

Aligning finance for the net-zero economy: thought leadership series

Report

Net zero investment framework

Report

Increasing infrastructure resilience with nature-based solutions

Report

Charting the Course to Climate-Aligned Finance

Report

A Framework and Principles for Climate Resilience Metrics in Financing Operations

Report

Raising the Game on Paris Alignment