The toolkit lets users access relevant content on-demand, without needing to read it from start to finish. It is organised into 11 sections (Sections 1–11), each addressing a key aspect of climate risk management within financial institutions (FIs), with a particular emphasis on the credit cycle (Sections 5–8). Each section features modules exploring specific topics in more detail.

Disclaimer: this guidance does not represent BII policy. Using it will not automatically make you compliant with ISSB S2 or local climate regulations. BII is not responsible for how you use this information or the tools provided.

 

Getting started

This toolkit is a practical reference guide that can be engaged with in different ways, to match the needs of the user. To begin, we recommend the following approach:

  • Read Section 1 to understand the toolkit’s purpose and structure.
  • Use the Toolkit map to find specific modules or download materials.
  • If you are new to climate risk, Section 10 covers FAQs with links to relevant modules.
  • Diagram 3 offers a visual map of how climate risk management intersects with the credit cycle.
  • Use the filter functionality at the top of each page to narrow down the content. You can select filters by: role or phase of the credit/lending process.
  • Watch the recording of the launch webinar. This includes an overview of the toolkit as well as detailed use case demonstrations.

We hope the BII Climate Risk Management Toolkit becomes a valuable resource to support real-world decision making, whether users are developing policy, conducting due diligence, engaging with clients, or reporting to stakeholders.

User job profile

Climate risk management is not confined to a single role or department. It involves collaboration across governance, strategy, business lines, risk, sustainability, legal and compliance, and assurance teams

Each module is designed with one or two key roles in mind, reflecting the broader context of climate risk management within FIs. The toolkit focuses on five target roles, each represented by a distinct icon:

  • Board-level decision maker or CXO

    Sets the organisation’s overall climate ambition and business strategy. The toolkit offers practical resources for defining strategy, setting risk appetite, allocating resource and ensuring compliance with regulatory standards such as IFRS S2.

  • Front-line Investment/Lending Officer as first line of defence (1LoD)

    Originates transactions and interacts directly with clients. This toolkit helps these users to identify climate risks and opportunities early, apply due diligence and engage productively with clients on transition and adaptation.

  • Risk Manager as second line of defence (2LoD)

    Develops risk management policies and integrates climate risk into credit, market and operational processes. The toolkit includes step-by-step guidance on scenario analysis, stress testing, risk appetite calibration and regulatory reporting.

  • Sustainability/ESG specialist

    Combines technical expertise with strategic influence to advance sustainability objectives. The toolkit provides templates for data collection, client engagement and target-setting to turn high-level commitments into operational processes.

  • Internal Audit as third line of defence (3LoD)

    Offers independent scrutiny of how climate risk is managed and how effective the controls are. The toolkit includes guidance for conducting objective reviews, testing systems and providing assurance across all modules.

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