The new Principles for Responsible Banking (PRB) Climate Adaptation Target Setting guidance aims to help banks accelerate their efforts on managing climate-related impacts and financing climate adaptation, by setting adaptation targets using the PRB impact framework. Building on a framing paper published in 2022, it sets out an initial, guiding approach for setting adaptation targets and incorporating adaptation considerations in banks’ transition plans and sustainability strategies while leveraging the co-benefits of adaptation with climate, nature and other aspects of the UN Sustainable Development Goals.

Developed by a working group of 27 PRB signatory banks and key external stakeholders, the guidance considers the diverse challenges faced by banks globally, including those in the Global South, where climate vulnerabilities are the greatest. By aligning with regional and sectoral priorities defined in National Adaptation Plans and Nationally Determined Contributions, the PRB guidance seeks to enable banks to support their clients’ adaptation strategies.

By providing a framework for banks to manage climate-related risks and opportunities, this guidance adds to the ongoing work to unlock private sector finance for climate adaptation, which can help to bridge the gap between current adaptation finance flows and the estimated needs.