Improving Sustainable Finance Implementation: Improving climate risk assessments and investment flows to biodiversity and adaptation: Steps for stakeholders
adelphi
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Abstract: This report presents the outcomes of six months of multi-stakeholder workshops aimed at enhancing the implementation of the G20 Sustainable Finance Roadmap with a focus on climate and biodiversity goals. It explores how integrating data on natural assets?such as forests, wetlands, and reefs?into climate risk assessments can improve financial decision-making across the public and private sectors. Over 130 stakeholders, including policymakers, financial institutions, civil society organizations, and sustainability experts, participated in consultations to identify opportunities and challenges in assessing physical climate risks. The findings emphasize that current risk assessments often overlook critical natural systems, leading to misallocation of capital, underestimation of risks, and lost economic and resilience benefits. The report calls for coordinated international action to improve data availability, standardize methodologies, and scale up nature-based information in climate risk models to drive more informed and sustainable financial decisions.