IFC Climate Governance Approach

Climate change is a significant and, in many cases, existential risk for companies. They are facing the unprecedented physical impacts of climate change, which their boards must address, such as extreme weather events disrupting value chains and affecting business infrastructure.

Using the IFC Corporate Governance Methodology, IFC’s climate governance approach guidance and recommended practices were developed to assist boards in appropriately identifying and overseeing climate-related risks and opportunities. 

IFC’s main tool in assessing climate governance is the IFC Climate Governance Progression Matrix to evaluate a company’s climate governance practices in each of the six areas of governance, with four levels of achievement (from basic to international best practice):

Governance 

Сontrol environment 

Climate governance 

Performance, metrics, and targets

Performance overview 

Sustainability performance 

Financial Statements Audit and Sustainability Assurance 

Extrafinancial analysis