NGFS Annual report 2022

The NGFS published its Annual Report 2022 and has made significant progress in its efforts to promote environmental sustainability in the financial system.
Indeed, in 2022, the NGFS consisted of 121 Members and 19 Observers, and it expanded its membership throughout the year. The organization intensified its analytical work, broadened its scope of activities, and strengthened its flagship projects.
One of the key achievements of the NGFS was the enhancement of its climate scenarios, which are now widely used by stakeholders for stress-testing and risk management purposes. The NGFS also focused on improving supervisory practices related to climate and environmental risks. In addition, the organization established dedicated task forces and expert networks to explore emerging topics such as nature-related risks, climate-related data, and the role of supervisors in transition planning. The NGFS also analyzed blended finance as a tool to scale up financing for decarbonization efforts.
To ensure the involvement of all members, the NGFS conducted regional outreach sessions, providing opportunities for collaboration and deeper engagement on issues relevant to each region. The organization prioritized capacity building and training to facilitate knowledge sharing among members. Despite the progress made, the NGFS recognizes that there is still much work to be done, especially in the face of setbacks to global climate efforts and the urgent need for action highlighted by the latest IPCC synthesis report.
To better address emerging topics and facilitate collaboration, the NGFS reorganized its key activities and long-term objectives around four workstreams:
The first workstream focuses on incorporating climate-related and environmental risks into supervisory frameworks and practices.
The second workstream aims to develop and promote climate scenario analysis.
The third workstream focuses on understanding the implications of climate change on monetary policy.
The fourth workstream provides a forum for NGFS members to discuss their own transition as institutions and share expertise on sustainable investment and climate-related disclosures.
To address transversal issues and emerging topics, the NGFS established project-oriented task forces on capacity building and training, as well as biodiversity losses and nature-related risks. The organization also created three expert networks focused on legal issues, data, and research. These networks aim to maintain the NGFS at the forefront of innovation in these areas.
In 2022, the NGFS organized two regional outreach sessions in Europe and the Americas. These sessions facilitated discussions on climate scenario analysis, stress testing, and nature-related risks. Future outreach sessions are planned for the Asia-Pacific region and Africa, focusing on region-specific issues and the transition to net-zero.
In terms of publications and events, the NGFS published nine reports and two occasional papers, conducted interviews with members, and organized high-level meetings, webinars, and conferences. The organization welcomed 16 new members and three new observers during the year.
As of the end of 2022, the NGFS membership covers 100% the supervision of all globally systemically important banks, 80% of Internationally Active Insurance Groups, and over 88% of global greenhouse gas emissions. These figures reflect the organization’s significant reach and influence within the financial sector.