An Innovative Agenda for Progress in Latin America and the Caribbean

Climate change is the defining issue of our time. Its impacts will be widespread and far-reaching, affecting all agents in the economy across all sectors and geographies.

The financial sector has a key role to play in addressing climate change challenges with fore- sight and to do so by integrating climate-related risks and opportunities in capital allocation deci- sion-making and financing the low-carbon, climate-resilient transition.

National development banks (NDBs) play a central role in the Latin American and Caribbean (LAC) financial sector. As such, they have the potential to mobilize and orient capital toward activities contributing to the goals of the Paris Agreement and the Sustainable Development Goals. It is critical that NDBs systematically identify, assess, and manage the climate-related risks associated with their trans- actions, portfolios, and operations.

The recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) provide a framework for integrating climate-re- lated risks and opportunities across the core areas that determine how organizations make decisions: governance, strategy, risk manage- ment, and metrics and targets.

This guidebook provides NDBs a roadmap to increase their climate risk maturity by taking key steps aligned with the TCFD recommendations.