Improving Sustainable Finance Implementation

Sustainable finance policy makers can take further steps in stimulating implementation of the G20 Sustainable Finance Roadmap priorities for climate and biodiversity goals. To support and accelerate the implementation of Roadmap Actions related to climate risk assessments and nature-related data, the EU G7/G20 Environmental Diplomacy Support Project, with support of the Nature-related Data Catalyst, launched by the Taskforce on Nature-related Financial Disclosures (TNFD), hosted a series of workshops over six months from September 2022 until February 2023. Convening over 130 workshop participants from leading institutions in central banking, insurance, financial institutions and data provision, these workshops explored how to better achieve sustainable finance policy and Roadmap goals, through future improvements in climate risk assessments and consequential financial decision making, through improving links to data on natural assets. This aimed to contribute to taking forward Roadmap Actions 7, 8 and 10 (decision-useful information) and 11 and 12 (risk assessments) to better enable risk, dependencies or impacts on climate and nature to be mainstreamed into financial decision-making.

The report provides results concerning the improvement of climate risk assessments and to increase financial flows to natural assets, climate adaptation and biodiversity. It indicates 3 areas, for which sustainable finance policy makers can take small steps to incentivise stakeholder action and realise benefits. It illustrates where leading stakeholders are already take action, and routes how first approaches in risk modelling and data provision can be scaled. Successful implementation of these steps can lead to enhanced climate risk assessments by sustainable finance, central banks and insurers, and enhances the valuation of natural assets, creating investable opportunities, increasing long-term biodiversity financing and prevent degradation.

In line with the steps for policy makers, adelphi also produced a version focussing on steps for wider stakeholders. It is available here.