The Global Risks Alliance (GRA)
What readiness means in asset Management Nexus: the evidence, governance and documentation a programme needs before a competent institution can review it independently.
Readiness in Asset Management Nexus is the state in which a programme's evidence, governance and documentation let a competent institution review it independently, against frameworks such as IFRS S1 and IFRS S2 and TNFD recommendations and the LEAP approach. A readiness file is released only at the owner's written direction, and GRA does not approve, rate, underwrite, lend or invest.
Fig.A programme from scoping to the owner's decision. Design, not a record.
Where a portfolio's assets sit, and how much of its value is most exposed. Hypothetical assets, not an assessment.
A readiness file describes a programme's evidence, risks and governance so that an institution can carry out its own review. GRA does not approve, rate, underwrite, lend or invest, and it recommends no counterparty.
Readiness supports the manager's own due diligence. It is not a recommendation to buy, hold or sell.
| Question | Evidence that helps answer it |
|---|---|
| Is the physical risk priced into expected cash flows? | Asset-level hazard exposure over the holding period, with insurance and adaptation assumptions |
| How does the asset behave under transition pathways? | Revenue and cost sensitivity under NGFS scenario families |
| What can be disclosed under IFRS S2 and local rules? | Financed emissions under PCAF and climate metrics the investor already reports |
| Does the asset depend on ecosystems at risk? | TNFD LEAP locate and evaluate outputs for the site |
Asset managers act under fiduciary duties defined by fund rules, client mandates and law, such as UCITS and AIFMD in the EU and the Investment Advisers Act in the United States. Physical and transition risk enters as financial risk to the portfolio, assessed within those duties. Boundaries are discussed at fiduciary boundaries; governance at GRF investment governance.
A file is released only at the programme owner's written direction, to a party the owner chooses, with no fee tied to any transaction.
Each term as this page uses it. Where a standard-setting body defines the term, the wording follows that body.
| Term | Definition |
|---|---|
| Readiness file | A document set describing a programme's evidence, risks, governance and data so that a competent institution can carry out its own independent review; it is not an approval, rating or offer of finance. |
| Due diligence | The independent investigation a lender or investor carries out before committing finance. |
| Environmental and social safeguards | Requirements lenders set so financed projects avoid, minimise and offset harm to people and the environment. |
| Stewardship | Investors' use of ownership rights and influence, through voting, engagement and escalation, to protect long-term value. |
The bodies and documents this page is read against. Status and editions change; each link goes to the issuing body.
The current service level is R0: information and enquiries. An enquiry receives a reference and names the next step; applications, payments, compute allocations and registrations open only when their team, terms and review capacity exist.