Assessing Climate Risk, Framing Resilience, and Reporting Impact

The document outlines a three-goal approach for climate finance vehicles to manage climate risk and build resilience. Goal 1 focuses on a five-step process to identify and manage physical climate hazards to align with international standards like the ISSB and Paris Agreement. Goal 2 guides the creation of an evidence-backed adaptation thesis to secure investor commitments, particularly for those targeting Multilateral Development Bank (MDB) funding. Goal 3 provides a methodology for designing impact measurement frameworks, including theories of change and indicator tables, to track resilience outcomes and avoid maladaptation.

• Climate risk management is essential for financial vehicles to protect business performance, avoid maladaptation, and comply with global standards. For instance, 200 of the largest companies have estimated over USD 1 trillion in climate change-related financial risk.
• The guide proposes a five-step process for assessing physical climate risk: listing end-users and assets, determining geographic bounds, identifying hazards (using IPCC categories), narrowing down material hazards, and building a risk management plan.
• To qualify as adaptation finance under Multilateral Development Bank (MDB) criteria, investments must establish the context of climate vulnerability, state an explicit intent to reduce that vulnerability, and demonstrate a direct link between project activities and the identified vulnerabilities.
• Effective impact measurement for adaptation requires a 'fit-for-purpose' strategy that includes a theory of change, an impact measurement framework, an indicator and metrics table, a baseline assessment, and a data collection plan.
• The document highlights specific examples of adaptation-relevant vehicles, such as the CRAFT fund's use of an Adaptation Solutions Taxonomy and the Páramo Wildfire Resilience Facility's focus on safeguarding water security in the Andean region.

APA

Richmond, M., Maguire, L., & Sherikar, P. (2026). Assessing Climate Risk, Framing Resilience, and Reporting Impact. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2000/01/Adaptation-and-Climate-Risk-Primer.pdf

Chicago

Richmond, Morgan, Liam Maguire, and Pallavi Sherikar. Assessing Climate Risk, Framing Resilience, and Reporting Impact. Climate Policy Initiative, 2026. https://www.climatepolicyinitiative.org/wp-content/uploads/2000/01/Adaptation-and-Climate-Risk-Primer.pdf.

Wikipedia

{{cite report |last1=Richmond |first1=Morgan |last2=Maguire |first2=Liam |last3=Sherikar |first3=Pallavi |title=Assessing Climate Risk, Framing Resilience, and Reporting Impact |publisher=Climate Policy Initiative |date=January 2026 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2000/01/Adaptation-and-Climate-Risk-Primer.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{richmond2026assessing, author = {Richmond, Morgan and Maguire, Liam and Sherikar, Pallavi}, title = {{Assessing Climate Risk, Framing Resilience, and Reporting Impact}}, institution = {Climate Policy Initiative}, year = {2026}, month = jan, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2000/01/Adaptation-and-Climate-Risk-Primer.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }