NGFS publishes 2026 Guide for Supervisors on climate and nature-related financial risks

Effective supervision helps ensure that financial institutions identify, assess and manage climate and nature-related financial risks, strengthening their resilience and that of the financial system as a whole. The Guide covers the key areas for integrating these risks into prudential supervision. It supports supervisors in:

• understanding how physical and transition risks transmit to the economy and financial system, 

• considering how climate and nature-related risks relate to their mandates, 

• developing appropriate strategies and organisational arrangements, 

• assessing institutions’ exposures and potential impacts, 

• and setting supervisory expectations, as well as the use of micro-prudential and macro-prudential tools where appropriate.

Since the first Guide was published in 2020, climate and nature-related financial risks have become increasingly relevant to financial stability and the safety and soundness of financial institutions, while supervisory practices have continued to evolve across jurisdictions. The updated Guide reflects these developments and provides more detailed treatment of several evolving areas of supervisory practice. Further, the Guide sets out recommendations that supervisors can consider and adapt to their circumstances, regardless of their starting point. 

The Guide discusses nature-related financial risks in greater depth, reflecting growing awareness of these risks and their interconnections with climate change. It also considers the growing supervisory focus on transition planning, through which institutions develop strategies for managing climate-related risks and opportunities, alongside emerging initiatives to integrate adaptation into supervisory assessments. The Guide further reflects the increasing use of scenarios and stress tests to assess vulnerabilities and resilience under different physical and transition risk pathways, including emerging applications to nature-related risks. It also considers the potential financial and reputational risks associated with the growing number of climate and nature-related legal cases, as well as developments in climate-related disclosure frameworks and their relevance to supervisory assessment and monitoring. 
Grounded in supervisory practice, the Guide provides a practical and adaptable reference for supervisors across jurisdictions. Recognising differences in supervisory mandates, institutional arrangements and resources, the Guide adopts a progressive and proportionate approach. The Guide draws on a survey of supervisory authorities, representing 70% of NGFS member jurisdictions, as well as numerous case studies and technical boxes illustrating practices across jurisdictions.

“Supervisors have been trailblazers in the financial ecosystem in terms of taking climate and nature considerations on board. As the material impact of climate and nature risks becomes more visible, this Guide will help our members to ensure that financial institutions remain resilient,” said Olaf Sleijpen, NGFS Chair. 

About the NGFS

The Network for Greening the Financial System (NGFS), launched at the Paris One Planet Summit on 12 December 2017, is a group of central banks and supervisors, which on a voluntary basis is willing to share best practices and contribute to the development of environment and climate risk management in the financial sector, and to mobilize mainstream finance to support the transition toward a sustainable economy. The NGFS brings together 151 central banks and supervisors and 24 observers. The NGFS Chair is Olaf Sleijpen, president of De Nederlandsche Bank. The Secretariat, headed by Yann Marin, is provided by Banque de France.

For more details, visit the NGFS website, LinkedIn and 2025 Annual Report, or contact the NGFS Secretariat at Banque de France sec.ngfs@banque-france.fr

Press Office at Banque de France: +33 (0) 1 42 92 39 00 / presse@banque-france.fr