The Climate Adaptation Target Setting guidance, developed by a working group of 27 PRB signatory banks and key external stakeholders, aims to help banks accelerate their efforts on managing climate-related impacts and financing climate adaptation. Building on a framing paper published in 2022, it sets out an initial, guiding approach for setting adaptation targets and incorporating adaptation considerations in their transition plans and sustainability strategies, while leveraging co-benefits of adaptation with climate, nature, and other aspects of the UN Sustainable Development Goals (SDGs). By providing a framework for banks to manage climate-related risks and opportunities, the PRB guidance adds to the ongoing work to unlock private sector finance for climate adaptation, which can help to bridge the gap between current adaptation finance flows and the estimated needs.
The guidance also considers the diverse challenges faced by banks globally, including those in the Global South, where climate vulnerabilities are the greatest. By aligning with regional and sectoral priorities defined in National Adaptation Plans and Nationally Determined Contributions, the PRB aims to ensure that banks play a pivotal role in supporting their clients’ adaptation strategies. Banks can also develop innovative adaptation products and services to support climate resilient development. This release is an important step for PRB signatories who have identified climate adaptation as an area of significant impact to meet their commitment to address the global climate challenge. Looking ahead, in 2024, the United Nations Environment Programme Finance Initiative (UNEP FI) plans to explore the practical implementation by piloting with more sector-specific elements with a select group of banks. This move signifies a concerted effort to translate the guidance into practice, marking a significant stride towards a more sustainable and resilient global banking system. Next year will also see publication of a foundational supplement focusing on physical risk assessment. To download the guidance, click .07 March 2023Climate Change, Publications, TCFD