The primary goal of this engagement
is to assist IFC’s selected partner FIs in Bangladesh and Nepal in developing a
comprehensive roadmap for climate risk management and establishing a baseline
for their climate risk profile. This will enable them to strengthen long-term
climate resilience while ensuring compliance with regulatory requirements and international
best practices.
To achieve its overall objective, the
assignment will focus on 4 components:
1. 1. Climate Risk Diagnostic and Roadmap
Development: Conduct
a comprehensive diagnostic of the FI’s existing strategies, policies,
practices, and mechanisms for managing climate risk. The insights gained from
this diagnostic will develop a structured roadmap to enhance the FI’s climate
risk management framework, ensuring regulatory compliance and long-term
resilience.
2.
Physical Risk Assessment: Conduct a portfolio assessment to set baseline for physical
risk and create physical risk heatmaps by sector and business line. The
assessment will provide critical insights into climate-related risk concentrations,
identify data gaps, and offer strategic recommendations to enhance the bank’s
approach to mitigating and managing climate risks.
3.
Transition Risk Assessment: Conduct transition risk assessment of FI’s portfolio to set
baseline for transition and develop exposure heatmap/dashboard by sector and
business line. The assessment will provide critical insights into climate risk
concentrations and opportunities for future.
4. Financed Emissions Calculation: Evaluate existing initiatives
undertaken by FIs on financed emission calculation, policy and reporting. Supporting
the FIs on financed emission calculation using PCAF methodology for portfolio
and loan level (as applicable).
