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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