The Network for Greening the Financial System (NGFS) is an international group of central banks and supervisors that was established in December 2017 with the aim of fostering cooperation and promoting the integration of environmental and climate risks into the financial system. The NGFS is a subsidiary body of the Bank for International Settlements (BIS) and has members from over 40 countries and regions.
The NGFS was formed in response to growing concern about the impact of climate change on the financial system and the need for central banks and supervisors to play a role in promoting sustainability and stability. The NGFS is focused on promoting the integration of environmental and climate risks into the financial system and supporting the transition to a low-carbon and resilient economy.
One of the key objectives of the NGFS is to promote the development of methodologies for the assessment and management of environmental and climate risks in the financial sector. To this end, the NGFS has developed a range of recommendations and guidelines, including a handbook on climate-related financial disclosure, which provides guidance on the disclosure of climate-related risks and opportunities by companies and financial institutions.
The NGFS is also focused on promoting the integration of environmental and climate risks into the supervisory framework and the financial sector more broadly. This includes efforts to improve the measurement and management of environmental and climate risks in the banking sector, and the development of tools and methodologies for the assessment of environmental and climate risks in financial products and services.
In addition to its work in promoting the integration of environmental and climate risks into the financial system, the NGFS is also focused on supporting the transition to a low-carbon and resilient economy. This includes promoting investment in low-carbon and sustainable infrastructure, and supporting the development of green finance products and services.
In conclusion, the Network for Greening the Financial System (NGFS) is an important international group of central banks and supervisors that is focused on promoting the integration of environmental and climate risks into the financial system and supporting the transition to a low-carbon and resilient economy. With its focus on developing methodologies for the assessment and management of environmental and climate risks, and its commitment to promoting sustainable and responsible investment, the NGFS is helping to ensure that the financial sector is well-positioned to respond to the challenges posed by climate change.