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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
Case study

BDMG Sustainable Bonds

Tools and guidance

Guidance on Metrics, Targets, and Transition Plans

Report

Lessons Learned from Three Years of Implementing the MDB-IDFC Common Principles for Climate Change Adaptation Finance Tracking

Report

Making finance consistent with climate goals

Report

Aligning Investments with the Temperature Goal of the Paris Agreement

Report

Green Bonds: what contribution to the Paris Agreement and how to maximize it?

Report

2017 Climate Mainstreaming Practices Report

Report

Climate Guide to Asset Owners: Aligning investment portfolios with the Paris Agreement

Report

Financing the energy transition: are World Bank, IFC, and ADB energy supply investments supporting a low-carbon future?

Case study

Yes Bank’s Environment Management System (EMS) and Policy-Journey to achieve ISO 14001:2015 Certification

Case study

CAF upgrades its Environmental Corporate Program to a fully Integrated Management System for Environment and Social Responsibility

Report

The productivity of International Financial Institutions Energy Interventions

Case study

Japan International Cooperation Agency (JICA) develops a tool to improve the design and implementation of climate change-related projects

Case study

The EBRD’s Measuring, Reporting and Verification (MRV) approach allows for transparency and accountability

Case study

Lending targets lead to performance tracking at Inter-American Development Bank (IADB)

Case study

Credit Agricole CIB uses sectoral and issue-based cartography of global financed emissions for developing CSR sector policies

Case study

Assessment of projects’ GHG emissions at AFD: implementation of a comprehensive carbon footprint tool

Case study

MDBs and IDFC establish common principles for climate finance tracking

Case study

Internal carbon tax of Societe Generale

Report

Climate strategies and metrics