Emerging Economies Climate Risks And Best Practices For Climate Risk Disclosure?Part 1
UNEP
Download
Abstract: This comprehensive report guides financial institutions and policymakers in emerging economies on implementing climate-related financial disclosures. It explores the foundations laid by the TCFD and the newly adopted IFRS S2 standard by the ISSB. The publication emphasizes physical risks?such as droughts, floods, and chronic climate impacts?as well as transition risks, including legal, market, technological, and reputational factors. It further discusses economic opportunities tied to a just transition and presents global examples of legislation aligned with climate reporting. The report outlines sector-specific guidance for banks and insurers, aiming to embed resilience and sustainability in capital markets. It also details how climate disclosures improve transparency, reduce risk exposure, attract sustainable investments, and enable a coordinated response to climate finance challenges. The publication supports knowledge-sharing across jurisdictions and provides pathways for technical capacity-building and regulatory alignment in emerging markets, with targeted examples from countries such as Kenya, Brazil, India, China, and Nigeria.