Climate and Nature Financial Risk
The Global Risks Alliance (GRA)
What readiness means in climate and Nature Financial Risk: the evidence, governance and documentation a programme needs before a competent institution can review it independently.
Climate and nature financial risk · Resilience and finance…
placeholder geography
| Insurer investments | Supervisory exercise… | Test | On track |
| Asset manager fund | Scenario analysis cycle | Test | On track |
| Supervisory exercise | Disclosure readiness | Test | At risk |
| Nature-sensitive sectors | Transition plan assessment | Test | On track |
Climate and Nature Financial Risk · Programme portfolioProgramme portfolio, in outline: domain structure with placeholder names and illustrative values, not a record.
Readiness in Climate and Nature Financial Risk is the state in which a programme's evidence, governance and documentation let a competent institution review it independently, against frameworks such as Principles for the effective management and supervision of climate-related financial risks and Disclosure of climate-related financial risks framework. 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.
How physical and transition risk could reach a loan book under different scenarios. Illustrative design values.
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.
| Question | Framework | Status, October 2026 |
|---|---|---|
| How should a bank manage climate risk? | BCBS climate principles | Published 2022 |
| How should an insurer? | IAIS climate application paper | Published April 2025 |
| What must be disclosed? | IFRS S2, local adoptions | In use; GHG amendments effective 2027 |
| How are financed emissions counted? | PCAF Part A | Third edition December 2025 |
| What about nature? | TNFD; ISSB proposal | TNFD recommendations 2023; ISSB exposure draft targeted October 2026, not a requirement |
| Which scenarios? | NGFS | Phase V with physical estimates under review; Phase VI announced for 2026 |
A programme's climate and nature evidence can be arranged once and read through each framework. The arrangement is the readiness work; the institution applies the framework. Disclosure governance at GRF climate disclosure 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. |
| Transition risk | Financial risk from the shift to a lower-carbon economy, through policy, technology, market and reputational change. |
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.