Network for Greening the Financial System publishes G20 input paper on integrating adaptation and resilience into transition plans

The Network for Greening the Financial System (NGFS) has published an input paper, prepared at the invitation of the G20 Sustainable Finance Working Group, setting out practical ways to integrate climate adaptation and resilience into transition plans that have typically focused on mitigation. The paper frames transition plans as strategic tools to assess and manage physical climate risks and applies five common building blocks of transition plan frameworks (governance, foundations, implementation strategy, engagement strategy, and metrics and targets) to incorporate adaptation and resilience considerations while capturing synergies with mitigation objectives. To address differing institutional capacities and operating contexts, it proposes a maturity pathway to help financial and non-financial institutions develop adaptation metrics and targets, and it highlights the role of public-sector enabling conditions and real-economy planning in unlocking adaptation-inclusive transition planning; the work benefited from contributions from the International Transition Plan Network, the Sustainable Insurance Forum, and CDP.