Executive Summary
Section 8 covers metrics for tracking client climate performance, transition and adaptation plan assessment, and science-based target setting. It emphasises the use of climate risk dashboards to convert due diligence findings into actionable metrics, enabling real-time risk management, cross-functional accountability, and strategic decision-making. Effective client engagement is highlighted as essential, with best practices for fostering dialogue, tailoring expectations, and creating practical tools. Special guidance is provided for MFIs, focusing on non-technical communication and community-based approaches. The section details frameworks for developing and assessing credible transition and adaptation plans, aligned with international standards such as IFRS S2. Science-based target setting is introduced as a key tool for aligning emissions reduction goals with climate science and global agreements.
Section 8 is especially useful for risk teams, sustainability specialists, portfolio managers, and client relationship teams seeking to embed climate risk monitoring, reporting, and strategic planning across their organisations.
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