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