The Network for Greening the Financial System (NGFS) published its Annual Report 2024, taking stock of its work across ten working groups and expert networks. The review highlights more than 115 meetings, conferences and working group webinars for members, 19 NGFS publications during the year, and a programme change in which the Task Force on Adaptation replaced the Blended Finance Initiative after the latter was considered to have fulfilled its mandate. Membership increased by ten institutions, ending 2024 with 144 members and 22 observers. Key outputs include the Transition Plan Package for supervisors, covering transition plan considerations for emerging market and developing economies, interlinkages between financial and non-financial firms’ plans, and a micro-prudential view of credible transition plans. On scenario analysis, the fifth vintage of the NGFS long-term climate scenarios updated country commitments and modelling and introduced a new damage function to estimate chronic physical risks, alongside supporting explanatory materials. The report also points to work on climate change, the macroeconomy and monetary policy, including an update on adapting central bank operations to physical risks and a series of reports on acute physical hazards, the green transition and climate macroeconomic modelling; guidance for central banks on sustainable and responsible investment in non-monetary portfolios, including ten recommendations; and a second edition of the NGFS guide on climate-related disclosure for central banks, structured around governance, strategy, risk management, and metrics and targets. Nature-related work featured the final conceptual framework with illustrative cases and a report on emerging trends in nature-related litigation, while the Task Force on Adaptation issued a conceptual note outlining areas for future work on metrics and disclosure, supervisory and regulatory frameworks, adaptation finance and international collaboration. Looking ahead, the annual report flags supervisory notes on target setting in transition plans and on interactions between scenario analysis and transition plans for the second half of 2025, as well as a 2025 compendium of good practices for implementing the nature conceptual framework and further development of nature scenario tools. It also notes that the first vintage of NGFS short-term climate scenarios was calibrated in 2024 and published in the second quarter of 2025, and that information notes from the data expert network are being finalised in 2025.

Original source View in tracker