Turning climate risk into resilient investment opportunities Climate change is reshaping the risk-and-opportunity landscape for financial institutions (FIs). Rising climate-related losses, evolving disclosure requirements, and shifting market expectations are creating material challenges for financial stability but also new domains for investment and innovation.

Beyond risk management, climate adaptation finance is an investment opportunity with measurable financial benefits, including strengthened asset quality, improved counterparty resilience, stabilised cash flows, and enhanced portfolio performance.

The Handbook for Financial Institutions: Climate Adaptation Finance, also called the CAF Handbook or Handbook, is a practical and strategic resource designed to help FIs operationalise adaptation finance.

Structured around six modules, the Handbook guides FIs through the key stages of integrating climate adaptation, understanding risks, identifying opportunities, managing impacts, and scaling finance. The modules span three core operational layers:

– Enabling Environment: Strategic positioning and foundational knowledge
– Internal Operations: Internal systems, processes, governance
– Business Development: Design and delivery of climate adaptation-linked products and services.