World Bank
FY22 Climate-Related
Financial Disclosures
WORLD BANK FY22 CLIMATE-RELATED DISCLOSURES

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Table of Contents
Introduction.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 3Governance .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 4Strategy.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 5Helping Our Client Countries Address Climate and Development:
CCAP 2021–2025 and More.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 5Strategic Approach to Corporate Sustainability .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 6

Risk Management .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 7Management of Climate-Related Financial Risk.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 7Management of Development Outcome Risk.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 8

Metrics and Targets.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 9Climate Metrics for World Bank Operational Activities and Advisory Services in FY22 .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 9Sustainability Considerations in World Bank Corporate Activities. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 11

Conclusion .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 11

Introduction
The World Bank Group’s (or “Bank Group”) Climate
Change Action Plan (CCAP) 2021–2025 recognizes
that climate change and sustainable development
must be addressed together to deliver on our goalsof reducing poverty and boosting shared prosperity. Transparency on climate metrics, targets, andoutcomes is crucial to ensuring that we deliver on
the CCAP 2021–2025. A key element of this is establishing global climate and sustainability disclosure
standards to move markets, incentivize low-carbon and sustainable investments, and identify andaddress climate risks.
The World Bank is the largest global contributorof climate finance and knowledge to developing
countries and has long supported global efforts toharmonize standards for sustainability reporting.
This report presents its first climate disclosuresusing the structure of the TCFD framework. The
disclosures, which cover IBRD and IDA, build on
the disclosures the Bank has made through the
Global Reporting Initiative (GRI) Index, to which it
has aligned its sustainability reporting since 2004,1
as well as through the CDP (formerly known as the
Carbon Disclosure Project) since 2009. Within the3

THE WORLD BANK ANNUAL REPORT 2022: APPENDIXESBank Group, the International Finance Corporation(IFC) and the Multilateral Investment Guarantee
Agency (MIGA) also produce disclosures using thestructure of the TCFD framework.
Climate and other sustainability considerations
are woven into all aspects of Bank- financed operations and corporate activities, including how weaddress climate-related challenges and opportunities to achieve positive development outcomes.
Our financial sustainability, which is critical for ourdevelopment mission, is grounded in strong governance and sound risk management.
Our climate disclosures for fiscal year 2022 (FY22)
outline how we manage climate-related risks andopportunities in our development and corporate
activities. It uses the TCFD framework’s four thematic areas: governance, strategy, risk management, and metrics and targets.

The World Bank has contributed to the development of corporate sustainability reporting through technical inputs, representation, and financial support.
1Governance
The management of climate-related risks andopportunities in the Bank’s development and corporate activities is overseen by its Managing Directors, who report to the President. The President
reports to the Board of Executive Directors (hereafter “the Board”), which is responsible for the general operations of IBRD and IDA.
Both the Board and the Bank’s Governors have recognized climate change as a global development
issue2 and endorsed the institutions’ ambition
for and commitments to integrating climate anddevelopment action. Presented to the Board in
2021, the CCAP 2021–2025 lays out how the Bankand its affiliated organizations3 will integrate climate action in their support to developing countries through 2025, building on the progress madeunder the inaugural CCAP 2016–2020. The Board
receives annual updates from management on the
progress made on the Action Plan, as well as on climate-related policy commitments.4
Delivering on climate and development goals is an
institution-wide effort, cutting across the Bank’s
operational and corporate units. This is enabled byclose collaboration between a dedicated Climate
Change Group, which steers the climate agenda
at the global level and offers expertise and funding to help integrate climate considerations intodevelopment operations, and the regional units,
which lead country-level engagement and delivery
on the ground. The Climate Change Group leads

on developing, monitoring, and reporting on the
progress made on the CCAP 2021–2025 and otherclimate-related policy commitments.
The Bank also has the Corporate Responsibility
Oversight Committee, which provides strategic
leadership and guidance for the institution’s corporate sustainability agenda. In addition to the Managing Directors, the Committee members consistof high-level representatives of the Bank’s corporate units, including those that manage the environmental, social, and economic impacts of theBank’s corporate activities and their reporting.

See Forward Look: https://worldbankgroup.sharepoint.
com/sites/wbunits/SPA/SitePages/Detail.aspx/Documents/
mode=view?_Id=5&SiteURL=/sites/wbunits/SPA and press
release: https://www.worldbank.org/en/news/press-release/2018/04/21/world-bankimf-spring-meetings-2018-development-committee-communique.
2

The World Bank Group consists of five organizations: theIBRD, the IDA, the IFC, MIGA, and the International Centre
for Settlement of Investment Disputes (ICSID). For a full list ofsenior management and an organizational chart, please see
pages 64 and 65 of the Appendices.
3

Through the 2018 Capital Increase for IBRD and IFC andthe IDA19 and IDA20 replenishments, the Board of Governors endorsed several climate-related commitments, such asincreasing the share of climate-related financing and screening all lending investments for climate and disaster risks,
among others.
4WORLD BANK FY22 CLIMATE-RELATED DISCLOSURES

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Strategy
Helping Our Client Countries Address
Climate and Development: CCAP 2021–
2025 and More
The CCAP 2021–2025 is designed to advancethe climate change aspects of the Bank Group’s
approach to green, resilient, and inclusive development, which seeks to promote economic progress
through a recovery path that is inclusive as well as
environmentally and socially sustainable. It also
represents a shift from efforts to “green” projects togreening entire economies. Under the CCAP 2021–
2025, the Bank Group is helping countries and private sector clients fully integrate their climate anddevelopment goals, identify and prioritize action
on the most impactful adaptation and mitigation
opportunities, and use those efforts to drive climate finance and private capital.
Key elements of CCAP 2021-2025 are as follows:•

Ambitious new climate finance targets: The
CCAP 2021–2025 calls for an average of 35 percent of Bank Group financing over FY2021–25
to be climate finance, up from a target of 28
percent by 2020. This means direct support forclimate change mitigation and adaptation. At
least 50 percent of the Bank’s climate financewill support adaptation.
•

A new core diagnostic on climate and development: Country Climate and Development
Reports (CCDRs) will provide economy-wide
analyses of climate risks and opportunities forclimate action by the public and the private
sectors, enabling the integration of climate anddevelopment considerations and prioritizationof interventions. In June 2022, the first CCDR,
for Türkiye, was launched, followed by the completion of CCDRs for Vietnam and the G5 Sahel
Region.5 Over 20 CCDRs were under development in FY22 and are expected to be publishedin calendar year 2022.

•

Aligning financial flows with the objectivesof the Paris Agreement: The Bank is committed to providing support to clients that is consistent with the Paris Agreement’s goals for
low-carbon and climate-resilient development.
All new IBRD and IDA operations are to be Paris-aligned by July 1, 2023, the start of FY24.

BOX 1: How the World Bank supports clients in greening their financial systems
Bank teams have supported more than 50 countries in greening their domestic financial sector regulatory
frameworks by providing technical assistance to devise green taxonomies and label bond standards, conduct
climate and nature risk assessments for the banking sector, and more.

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THE WORLD BANK ANNUAL REPORT 2022: APPENDIXES

BOX 2: Supporting Botswana’s Economic Resilience and Green Recovery
Through the CSF, IBRD is helping the Government of Botswana embed green recovery and climate resilience
principles in its development operations to promote economic resilience. A CSF grant will help ministries
develop and adopt climate risk guidelines that will ensure climate considerations are incorporated into theevaluation and assessment of new development investments. The project will also include a stakeholder
engagement process and external workshops to introduce the guidelines and determine how they can be adequately adopted and enforced. Over the long term, successful implementation of the guidelines is expected to
attract more green financing. This project is aligned with the country’s Economic Recovery and Transformation
Plan, adopted in September 2020, as well as its COVID-19 Economic Response Plan.

••

Prioritizing transformative investments infive key systems: These systems— energy;
agriculture, food, water, and land; cities; transport; and manufacturing—are critical for development, but account for over 90 percent of
global greenhouse gas (GHG) emissions andface significant adaptation challenges. The
CCAP 2021–2025 prioritizes investments to
support climate transitions in those systems.
Driving climate finance to deliver the greatest results: The Bank will continue supporting global and country-level engagement toscale-up public and private climate financeavailable to emerging markets for both mitigation and adaptation. This includes contingent
and crisis financing options that can be usedin case of climate-related extreme weather
events and other shocks, such as the Crisis
Response Window (CRW) available to IDA
countries. We will also support greening of thefinancial sector by working with central banks,
national development banks, and private sector financial institutions (see Box 1).

Trust funds support the climate agenda by complementing core Bank financing, helping clientsmobilize resources, and financing research andknowledge tools for greater climate resilience andlow-carbon growth. Climate-related trust funds—
which offer grants and concessional financing tocountries—that are active in FY22 include the Global
Environment Facility (GEF), the Climate Investment
Funds (CIF), and the Global Facility for Disaster
Reduction and Recovery (GFDRR).6 Launched in
2020, the Bank-administered Climate Support Facility (CSF)7 had its first full year of implementation in
FY22, helping governments enhance climate ambition and action through long-term planning andcross-sectoral coordination (see Box 2).

Strategic Approach to Corporate
Sustainability
The COVID-19 pandemic has highlighted the deep
interconnectedness between the planet, people, and economies; it has also strengthened theBank’s commitment to environmental, social, andeconomic sustainability.
The Corporate Responsibility Strategic Plan,8 published in FY17, focuses on reviewing mandates andprogress on corporate responsibility at the Bank,evaluating the current corporate responsibility
landscape and trends, engaging stakeholders for
input, identifying implementation priorities, andestablishing a rolling three-year implementation
plan for corporate responsibility. The Managing
Director and Chief Administrative Officer has
approved an action plan to set long-term targets.
The Bank is also systemically embedding sustainability in decisions across internal operations,
including its facilities and supply chain, based on
10 Corporate Sustainability Principles. The Bank’s
progress on corporate sustainability can be foundin the World Bank’s annual GRI Index and biennial
Sustainability Review.

The G5 Sahel includes Burkina Faso, Chad, Mali, Mauritania,
and Niger.
5

See http://www.thegef.org, http://www.
climateinvestmentfunds.org, and http://www.gfdrr.org.
6

See https://www.worldbank.org/en/programs/
climate-support-facility.
78

See https://www.worldbank.org/en/about/what-we-do/crinfo.

WORLD BANK FY22 CLIMATE-RELATED DISCLOSURES

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Risk Management
IBRD and IDA assume financial risks in order toachieve their development and strategic objectives. Their risk management frameworks enable
them to achieve their goals in a financially sustainable manner. To ensure effectiveness, IBRD
and IDA consider both physical risks from climatechange and transition risks9 in their risk management and assess their impact on sovereign borrowers, markets, counterparties, and operations.
IBRD and IDA’s risk management processes andpractices reflect changes in market and regulatory conditions, credit, and development context,
including the effect of climate-related risks andopportunities. The Chief Risk Officer (CRO) oversees both financial and operational risks for IBRD
and IDA. These risks include (i) country credit risks
in the core sovereign-lending business; (ii) market
and counterparty risks, including liquidity risk; and(iii) operational risks relating to people, processes,
and systems. The CRO also promotes cooperation between the Bank Group entities and facilitates knowledge sharing in the risk management
function. The Board, particularly Audit Committee
members, periodically review trends in IBRD and
IDA’s risk profiles and performance as well as any

major developments in risk management policies
and controls. The risk of operations financed by
IBRD and IDA not meeting their development outcomes (development outcome risk) is monitored
at the corporate level by Operations Policy andCountry Services (OPCS).

Management of Climate-Related
Financial Risk
In managing its financial risks, including the potential impact of climate change, the Bank uses its
own comprehensive credit rating methodology toassess all IBRD and IDA borrowers. The assessment is done at least once a year by the CRO,
over a three-year credit risk horizon, with higher
frequency if needed. The approach is comprehensive, using both quantitative and qualitative inputs
covering a wide range of factors relevant to thecountry’s risk of default to the Bank. This includes
physical, environmental, and transition risk factors,
such as the frequency and magnitude of disasters, rising temperatures, and dependency on carbon-intensive industries. These sovereign credit
ratings are key inputs for IBRD and IDA exposure
management.

BOX 3: Integrating Climate Considerations into IBRD and IDA Operations
Climate and disaster risk screening is a process for identifying short- and long-term physical risks faced by
IBRD and IDA operations. The screening has been required for all IDA operations since July 1, 2014, and for all
IBRD operations since July 1, 2017. Identifying risks and proactively incorporating resilience measures at an
early stage of project design can help projects achieve their development objectives.
GHG accounting is performed for all IBRD and IDA Investment Project Financing (IPF) operations where methodologies are available. Applying a shadow price of carbon in the economic analysis has been required for all
IBRD or IDA IPFs that are subject to GHG accounting since July 1, 2017. The purpose is to contribute to greatertransparency and consistency of the project’s GHG impacts and inform decision-making by the Bank and its
clients.
Climate indicators monitor and track the progress of climate results, measuring outputs or outcomes of mitigation and/or adaptation financing interventions. As of FY21, all IBRD and IDA operations with 20 percent ormore climate finance incorporate at least one climate indicator to monitor and track climate results.

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THE WORLD BANK ANNUAL REPORT 2022: APPENDIXES

Management of Development Outcome Risk
The Bank separately assesses how climate risks
may affect the ability of IBRD and IDA– financed
operations to deliver their intended development
outcomes. Those risks, along with other economic,
political, and social factors, are assessed by operational teams using the Systematic Operations Risk
Rating Tool (SORT) and monitored at the corporate
level by OPCS. The SORT is complemented by theBank's Environmental and Social Framework (ESF),
which requires borrowers to consider transboundary and global environmental aspects, including
climate change, in the project design. The ESF
specifies that the Bank’s commitment to environmental sustainability includes stronger collective
action to support climate change mitigation andadaptation, taking climate change into account in
its environmental and social risk and impact due
diligence, and actions that are proportionate to thelevel of identified risk.
The Bank is also scaling up climate-related financing, integrating climate change across its lending

operations, and working closely with client country
governments and development partners to build
systemic impact on the ground. Several processes
have been set up to enable IBRD and IDA financing operations to integrate climate considerationsin their design. These include undertaking climate
and disaster risk screening, accounting for GHG
emissions, applying a shadow price of carbon, andincorporating climate-related results indicators.

Physical risks are those resulting from disruptions andimpacts of climate change–related events and can beboth acute and chronic. Examples of physical risks include
droughts, floods, increasing sea levels, rising temperatures,etc., that may have an impact on supply chains, operational
capacity, damage to physical assets, and other aspects ofthe business. Transition risks are those faced by investors aspart of the global shift to a low-carbon economy. Examples oftransition risks include changes in climate and energy policies, a shift to low-carbon technologies, changes in consumer
preferences, and reputation and liability issues. Transitionalrisks can vary substantially depending on scenarios for policy
and technology changes.
9WORLD BANK FY22 CLIMATE-RELATED DISCLOSURES

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Metrics and Targets
The Bank monitors and reports on progress on climate-related targets and commitments tied to its
operations and corporate practices. The Bank is on
track to meet its targets and commitments, including those outlined in the CCAP 2021–2025.

Climate Metrics for World Bank
Operational Activities and Advisory
Services in FY22
The Bank has adopted a number of quantitative
metrics and indicators to track and report on its
climate-related targets and commitments, as wellas other sustainability and resilience–related operational performance. The Corporate Scorecards10of the Bank Group and the Bank include three tiers:
Tier 1 on development context and the poverty andprosperity goals, Tier 2 on results delivered throughBank Group operations, and Tier 3 on the Bank
Group’s operational and organizational effectiveness. Indicators related to climate, resilience, andsustainability include: GHG emission reductions,countries supported on disaster risk reduction,
number of countries with a completed CCDR, andshare of climate-related financing in total commitments. The latest results can be found here.
Figure 1: FY18–22 World Bank's Climate Finance9

THE WORLD BANK ANNUAL REPORT 2022: APPENDIXES

Separately, the IDA Results Measurement System(IDA RMS)11 tracks results in countries supported
by IDA, including operations using climate- andresilience-related Tier 1, Tier 2, and Tier 3 indicators,
such as projected lifetime energy or fuel savings,
renewable energy generation capacity (in gigawatts), share of adaptation co-benefits over total
climate co-benefits in IDA-supported operations,and IDA financing commitments with disaster risk
management co-benefits. The latest IDA RMS canbe found here.
The IDA19 replenishment, covering FY21–22, has
strengthened and advanced climate adaptation and mitigation for IDA countries throughthe Climate Change Special Theme and its policy commitments. The historic $93 billion IDA20
replenishment, covering FY23–25, further steps up
ambition on climate change, nature-based solutions, and biodiversity through a new set of policy
commitments under this Special Theme. Progress
toward IDA policy commitments is reported on
regularly, including through a Mid-Term Review andfinal Retrospective.

Figure 2: Overview of IBRD and IDA Climate Finance

Figure 3: Share of World Bank Operations with Climate Finance

The Bank tracks its climate finance using the methodology developed jointly by the multilateral development banks (MDBs).12
In FY22, IBRD operations delivered $12.6 billion
in climate finance (present in 90 percent of all
IBRD-approved projects and representing 38 percent of total IBRD commitments). IDA operationsdelivered $13.5 billion in climate finance (present in
94 percent of all IDA-approved projects and representing 36 percent of total IDA commitments).

The combined amount reflects Bank progress
toward meeting the overall Bank Group target of 35
percent climate finance, on average, over FY21–25.
More than 49 percent of our climate finance supported adaptation, on track toward the target of
50 percent of IBRD and IDA climate finance supporting adaptation over FY21–25. The latest project-level climate finance data for the Bank areavailable here.

WORLD BANK FY22 CLIMATE-RELATED DISCLOSURES

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Sustainability Considerations in WorldBank Corporate Activities
Buildings, together with travel, constitute the largest sources of GHG emissions for the Bank. The
Bank seeks to reduce absolute carbon emissions
from its own global facilities by 30 percent by 2026,
compared to a 2016 baseline. The Bank’s owned andmanaged facilities continued to increase energy
efficiency (reduce energy use), going from 0.81 GJ/
m2 in 2017 to 0.61 GJ/m2 in 2021. Only in FY23 will
the Bank better understand changes in travel emissions over the same period following over two yearsof restricted travel during the COVID-19 pandemic.
The latest information and details on the sustainability considerations of the Bank’s corporate practices can be found on its Corporate Responsibility
site, in the annual GRI Index and biennial Sustainability Review. Relevant highlights from these latest
reports are:•Between FY20 and FY21, the Bank’s total global
emissions within the organization (Scope 1 and214) were reduced by 9,813 tonnes of CO2 equivalent mainly through reductions in electricity
use. The headquarters facilities had an electricity emission reduction of 4,591 tonnes CO2
equivalent. The shift to home-based work starting in March 2020 and continued through June
2021 resulted in a shift in resource consumption

from Bank buildings to staff households. A
high-level analysis suggested that total energy
and water consumption (including staff households) decreased in the short term, while total
waste was either unchanged or potentiallygrew slightly.
The Corporate Scorecards of the World Bank Group
provide an overarching view of the results and performance indicators of the Group’s three institutions: theWorld Bank, the IFC, and MIGA. Separate scorecards for
the World Bank, IFC, and MIGA complement the WorldBank Group Scorecard. The Scorecards are critical tools
for monitoring the Bank Group’s performance in key global
and institutional priority areas.
10

The Bank Group introduced the RMS as a key reporting
and accountability tool for tracking progress and reporting results achieved by IDA during each replenishment
cycle. The IDA RMS is a central part of the Bank Group’s
framework for tracking progress at an aggregate level
and integral to the Bank’s efforts to improve the focus on
results. The IDA RMS uses a three-tiered development
results framework with 84 indicators to track results of IDA
countries at an aggregate level.
11

See: https://www.worldbank.org/en/topic/
climatechange/overview
12

The Bank measures GHG emissions intensity in two
distinct categories: (i) Scope 1 and 2, and (ii) Scope 3. Datalag by one fiscal year. The former emissions are normalized per square meter, while the latter emissions arenormalized per full-time equivalent (FTE) employee, which
consists of staff and short-term consultants. Emissions
data are given in metric tons, or tonnes.
13

Conclusion
Delivering on green, resilient, and inclusive development is more urgent than ever. Transparency on
how institutions manage climate risk and utilize
opportunities is essential to support more efficientand sustainable capital markets. Climate-related
risk assessment and management are a rapidly
developing field, and the methodologies being

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THE WORLD BANK ANNUAL REPORT 2022: APPENDIXES

used are still in their early stages. Looking ahead,
IBRD and IDA will continue to assess the impact ofclimate-related factors on their strategy, business,financial performance, and risk management, andwill enhance their disclosures in line with evolving
global standards.