Corporate Climate Governance Facility

Overview
How does the facility work?
Why does the EBRD do this?

The EBRD helps its clients to enhance their corporate climate governance.

The EBRD’s Corporate Climate Governance Facility transforms the way our clients do business by enhancing their capacity to manage climate-related risks and opportunities and unlocking green investment.

How the facility benefits our clients

It reduces costs:

Mandatory climate-related financial disclosure is spreading to more jurisdictions, and global standards are under development. At the same time, climate-related policies are expanding to cover more economic sectors. Better climate governance reduces compliance costs and allows financial institutions and other companies to anticipate and plan for risks and opportunities associated with these changes.

It enhances resilience:

Improved climate governance can help businesses in the EBRD regions to adapt to the growing frequency and intensity of droughts, floods, heatwaves and wildfires by building more climate-resilient infrastructure and planning for disruptions to supply chains.

It strengthens competitiveness:

Emission-intensive activities in the 13 EBRD economies that are member states of the EU are already subject to a carbon price. From 2026, a mechanism to price goods imported into the EU on the basis of their embedded emissions will affect exports from EBRD economies outside the EU that are worth tens of billions of euros a year. Climate governance can find ways to reduce carbon intensity, which is having a growing influence on corporate competitiveness.

It reveals opportunities:

The transition to a low-carbon, climate-resilient world will transform the global economy. Effective climate governance can reveal economic opportunities associated with this change.

It unlocks finance:

Appetite for sustainable investment has risen sharply in recent years alongside demands from investors and lenders for increased climate-related disclosure. Enhanced climate governance can help financial institutions and other companies to reassure capital markets, diversify their investor base, and use new instruments such as green bonds or sustainability-linked loans to access finance.

ESG reporting guidelines supported by the EBRD

Warsaw Stock Exchange

Prague Stock Exchange

Macedonian Stock Exchange

Bucharest Stock Exchange

Overview

The facility makes it easy for EBRD clients to obtain assistance with their climate governance, helping them to (i) develop transition plans that they can use to address governance gaps,
(ii) identify priority green investments and (iii) raise capital. It supports EBRD clients in three main ways:

Developing credible transition plans. We work with companies to define a range of priority actions and investments in the field of climate-related governance, disclosure and investment that set them on a path towards decarbonisation.
Building capabilities, tools and processes. We help companies to understand and manage climate-related risks and opportunities and disclose climate-related information to regulators, lenders and investors using best-practice frameworks compatible with emerging global standards.
Unlocking finance for green investments. We connect companies to sources of finance by investing ourselves, mobilising public and private investment, and helping companies to access capital markets (for example, through green and sustainability bonds).

Donors and partners

The EBRD works to enhance climate governance, climate risk management, climate-related disclosure and transition planning in the EBRD regions by collaborating with a number of partners on policy, regulations, standards, guidance and capacity building. Those partners include the G20 Sustainable Finance Working Group, the EU Platform for Sustainable Finance, the Network for Greening the Financial System and the Climate Governance Initiative (which is endorsed by the World Economic Forum).

The EBRD is also supporting stock exchanges in Warsaw, Bucharest, Prague and North Macedonia with the preparation of environmental, social and governance (ESG) guidelines, which include climate reporting.

The work of the EBRD’s Corporate Climate Governance Facility would not be possible without donor support, with donors including:

Climate Investment Funds
EBRD Shareholder Special Fund
Green Climate Fund
Japan
TaiwanBusiness-EBRD Technical Cooperation Fund

Action to mitigate and adapt to climate change will be the economic growth story of the next few decades. The EBRD believes that the best way to serve its clients and economies is by helping them to reduce the risks surrounding the transition to a low-carbon world and take advantage of the associated opportunities.

The EBRD is working to meet the firm commitments it has made on climate action. Since January 2023, all of its projects and other activities have been aligned with the goals of the Paris Agreement, in line with an operational framework developed in cooperation with other multilateral development banks (MDBs).

Meeting these commitments will affect how we engage with our clients and what investments we choose to make. In some cases, it will involve working with clients on their climate governance to help them grow and prosper as physical and policy climates change. The Corporate Climate Governance Facility is the main platform that we will use to provide this support.

The EBRD is also working to enhance its own impact and performance by improving its climate governance. It was the first MDB to become a supporter of the Task Force on Climate-Related Financial Disclosures (TCFD), a framework that has been foundational for emerging global standards on climate-related disclosures. The EBRD has implemented many TCFD recommendations and disclosed climate-related information in several dedicated TCFD reports.

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