The Network for Greening the Financial System brings together central banks and supervisors, committed to taking due account of the climate risk to global financial stability.

The effects of climate change are having a direct impact on our economies and resulting in risks to the stability of the financial system. The Network for Greening the Financial System brings together committed stakeholders, with central banks and supervisors aiming to step up their work on climate and environmental risk and on scaling up green finance. The work of the NGFS helps strengthen the global response required to meet the objectives of the Paris Agreement, in addition to the work carried out by governments on climate issues. It contributes to reinforcing the role of the financial system in the management of climate risks and to raising capital for green and low-carbon investments. It mobilizes capital to transition to net zero economy.

The NGFS, which was launched by its eight first members at the One Planet Summit in December 2017, now comprises 134 central banks and supervisors, together with 21 observers responsible for the oversight of :

  • 100% of the global systematically important banks
  • 80% of the internationally active insurance groups
Practical options for central banks to incorporate climate risk in their operations

The latest report published by the NGFS “Adapting central bank operations to a hotter world: Reviewing some options” examines a range of options available to banks in three fields: credit operations, warranty policies and asset purchase.

They can now act on the basis of a framework for action adapted to their remit, their legal environment and their individual assessment.

The work of the network is organized around two main objectives:

  1. Sharing analytical work and innovations, to measure the long-term risk associated with climate change;
  2. Promoting the development of opportunities relating to transition finance.

In 2019, the NGFS published six recommendations to help its members “take the plunge”. Since then, it has produced a range of guides (operational deliverables for its members, based on the Network’s best practices) and technical documentation. Its recommendations are to:

  • Incorporate climate risk in the monitoring of financial stability and in micro-prudential supervision,
  • Incorporate sustainable development factors into own-account investment portfolio management,
  • Bridge data gaps,
  • Raise awareness and reinforce analysis capacity, encourage technical assistance and knowledge sharing,
  • Publish financial data on climate and environmental risk, based on solid and internationally homogeneous criteria, in particular those found in the recommendations of the TCFD (the Taskforce on Climate-Related Financial Disclosures created by the Financial Stability Board)
  • Promote the development of an international taxonomy of economic activity.
of global GDP
The Network’s 89 members represent countries which together represent 85% of global GDP and 75% of greenhouse gas emissions


In 2020, 45% of NGFS members had adopted sustainable and responsible investment practices.

Strengthen supervision of financial institutions' climate-related risks

  • Published a Guide for Supervisors on integrating climate-related and environmental risks into prudential supervision
  • To examine role of supervisors in assessing financial institutions’ transition plans
  • To perform deep-dive into prudential supervision of climate-related litigation risk

Develop climate scenarios for financial system

  • Published three vintages of NGFS climate risk scenarios to aid public and private sector players in carrying out detailed analysis of financial risks posed by climate change
  • To continue to reiterate scenarios to enhance its use – e.g through expanding the scope to include short-term scenarios, physical risks, and sectoral granularity

Achieve net zero for central banks

  • Published the Sustainable and Responsible Investment Guide for Central Banks’ Portfolio Management to allow regulators to lead by example and include sustainability considerations in their portfolio management
  • To explore suitable metrics for central banks’ disclosure of climate-related and environmental risks, including climate-related governance structure and strategy

Examine impact of climate change on monetary policy

  • To provide central banks with the requisite tools to make sense of the implications of climate change for monetary policies
  • To explore related monetary policy operations and review existing practices

Bridge climate-related data gaps

  • Published the NGFS Data Directory as a living catalog of available climate-related metrics and data sources
  • Published a final report on bridging data gaps to provide policy recommendations on improving the availability, quality and comparability of climate-related data
  • To set up a Data Expert Network to continue to contribute to climate data issues

Step up efforts on capacity building and training

  • Joined the launch of the Climate Training Alliance initiative in 2021 to enhance availability of training resources for authorities
  • To develop a training curriculum, to help central banks and supervisors build up their capabilities in a progressive manner, from foundational knowledge to more advanced and specific skill sets

Advance global discussions collaboratively with private and public sector

  • Embed nature-related risks across NGFS initiative
  • Raise awareness about blended finance and address potential regulatory and practical barriers
  • Research into emerging topics
Effective transition towards net zero will require concerted effort across the ecosystem. Central banks and financial regulators have an important role to play in this effort. One, they must ensure that the financial sector stays resilient amid the physical and transition risks posed by climate change. Two, they must help mobilize the financing needed to decarbonise the global economy. With 140 members and observers now, the NGFS will continue to collaborate with key partners within the ecosystem to green the financial sector and support global climate action.
Ravi Menon, Chair of the NGFS
For more information

Starting with a membership of eight founders, the Network has grown rapidly and now welcomes an ever increasing number of members and observers, from all five continents. The current list of members can be found here.

The NGFS charter sets out the Network’s rules of governance (): the Network has an Executive Committee, which elects the President for a renewable two-year term. The current NGFS President is Ravi Menon (Managing Director of the Monetary Authority of Singapore), and the Banque de France provides the Network with a permanent Secretariat.

Key NGFS data, together with progress achieved, can be found in the Network’s annual report.
All information relating to the NGFS, including all analysis and research publications, as well as annual reports, can be consulted on its website (

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