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In 2016, the Boards of Governors of the IDB Group decided to significantly increase our climate portfolio.

At the annual meeting, held in the Bahamas, they set a target to allocate 30 percent of the IDB Group’s combined financing—total approvals of loans, guarantees, investment grants, technical cooperation and equity operations—for climate change-related projects by the end of 2020. That would be double the average annual volume of the IDB Group’s climate finance between 2012 and 2015.

Our actions on climate are in line with a set of voluntary principles the IDB Group and 25 other institutions from around the world adopted in 2015. These principles call for financial institutions to:

  • Commit to climate strategies—This involves setting strategic policies and priorities at the highest levels to integrate climate change considerations into lending and advisory activities.
  • Manage climate risks—Financial institutions should assess their own portfolios and new investments, and work with clients to determine how to increase resilience and sustainability.
  • Promote climate-smart objectives—The idea here is to generate new tools and products to mobilize more financing for climate change action.
  • Improve climate performance—This principle addresses the need to have the appropriate operational tools in place to track climate performance.
  • Account for climate action—Financial institutions should be transparent about their own climate performance and, when possible, report on how their investment portfolios are doing in this regard.