International Finance Corporation

Climate risk, resilience and adaptation

This page is part of the E3G Public Bank Climate Tracker Matrix, our tool to help you assess the Paris alignment of public banks, MDBs and DFIs

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Paris AlignmentReasoning
Some progressIFC is implementing new project-level climate risk management processes; adaptation finance is low but there is the intention to grow this.
Project-level climate risk management proceduresScope of coverage of project-level climate risk managementEnhancing client climate resilience Adaptation  
finance 
IFC screens projects for climate risk and manages risks where these are identified.IFC is screening all “relevant” projects for climate risks.Awaiting next steps for IFC to operationalise and assess outputs of the taskforce.IFC has provided very little adaptation finance to date but has committed to improving this.

Explanation

The IFC Strategy & Business Outlook Update FY20-FY22 states that IFC also committed to systematic screening of projects for climate risk in relevant sectors, which it is piloting in seven industry sectors in FY19. Pending a review and stock-take of lessons learnt, IFC will decide on next steps on extending the climate risk assessments to other vulnerable sectors. IFC will also continue to incorporate adaptation and climate risk in its Anticipated Impact Measurement and Monitoring (AIMM) system.

The AIMM system allows IFC to examine the systemic effects on the overall market. It looks at how a project affects stakeholders and examines the broader effects on the economy and society, including how projects promote objectives that underpin our efforts to create markets—by promoting competitiveness, resilience, integration within and across markets, inclusiveness, and sustainability.

Last Update: November 2020

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