UNEP Finance Initiative (UNEP FI) - Consultant, Climate Adaptation & Resilience Metrics for the Finance Sector

Contract

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Result of Service

Through these services, UNEP FI will be able to pilot and test clear and robust climate adaptation and resilience metrics with increasing consistency across its ongoing and future programmes with finance sector stakeholders, including banks, investors and DFIs.

The consultant will help to maintain progress on metrics with development finance institutions under the ARIC programme, while ensuring that workplans for new projects involving banks and other stakeholders under the PRB and GEF programmes both take lessons learned from the ARIC work and other sector initiatives, and are complementary.

These will be important steps in driving robust and consistent climate adaptation metrics across the finance sector as climate impacts become increasingly severe, especially for those regions in the Global South that are most vulnerable to climate-related impacts.

Work Location

Working remotely

Expected duration

6 months

Duties and Responsibilities

The United Nations Environment Programme (UNEP) is the leading global environmental authority that sets the global environmental agenda, promotes the coherent implementation of the environmental dimension of sustainable development within the United Nations system and serves as an authoritative advocate for the global environment.

The overall objective of the UNEP’s Economy Division is to encourage decision makers in government, local authorities and industry to develop and adopt policies, strategies and practices and technologies that promote sustainable patterns of consumption and production, make efficient use of natural resources, ensure safe management of chemicals and contribute to making trade and environment policies mutually supportive. It promotes the development, use and transfer of policies, technologies, economic instruments, managerial practices and other tools that assist in environmentally sound decision making and the building of corresponding activities.

The United Nations Environment Programme Finance Initiative (UNEP FI) is the strategic partnership between the United Nations and over 500 banks and insurers. For over 30 years, UNEP FI has been shaping and driving the international sustainable finance agenda, setting global standards and growing a global network of leading financial institutions. Through its work-streams and regional activities, peer learning, methodology development, training and research, UNEP FI promotes sustainable finance and helps the financial industry align with and contribute to the Paris Agreement and Sustainable Development Goals.

UNEP FI and Climate Adaptation

Since the publication of the recommendations of the Task Force on Climate Related Financial Disclosures in 2017, UNEP FI has been working with banks, investors and insurers to assess the potential risks from the physical impacts of climate change. The TCFD sets out how companies, including financial institutions can identify, assess, manage and report on climate-related financial risks. Since 2017, the TCFD framework has been increasingly integrated into corporate and finance sector regulations with the aims of ensuring financial stability and providing greater transparency around climate-related risks and opportunities in financial markets. Recent surveys of UNEP FI members have shown that the main reasons for financial institutions to assess climate-related risks are compliance with these new and expanding regulations, and to respond to climate stress tests imposed by central banks and regulators.

Monitoring and reporting on climate-related risks, however, does not mean that financial institutions, businesses, households, communities and economies will necessarily become more climate resilient. UNEP FI has been working to identify how financial institutions can not only identify and report on risks but also support climate adaptation in the real economy, working with banks, insurers and development finance institutions through the following projects and initiatives: • Finance sector: In early 2019, UNEP FI together with the Global Commission on Adaptation reviewed the key challenges in scaling up adaptation finance, and how policy makers and financial institutions could incentivise greater investment in adaptation. Find out more in the report Driving Finance Today for the Climate Resilient Society of Tomorrow. • Insurance can play an important role in scaling finance for adaptation and resilience by pricing and managing the risks. UNEP FI’s collaboration with the V20 group of climate vulnerable countries aims to create more climate resilient economies by supporting insurance and credit solutions for medium, small and micro enterprises through the Sustainable Insurance Facility. • Banks’ exposure to the physical impacts of climate change is set out in UNEP FI’s framing paper Adapting to a New Climate. Based on the recommendations of this report, a working group of 26 signatories to the Principles for Responsible Banking launched the world’s first Adaptation Target Setting guidance for banks. This guidance provides an overarching framework, but 2024 will see an exercise to pilot the guidance across a handful of sectors with a greater focus on implementation through physical risk assessment, impact metrics, financial mobilisation and adaptation planning. • Development finance: Climate risk mitigation will also require concessional finance – development finance institutions are working with UNEP FI to develop the tools necessary to scale up finance for adaptation in emerging markets and developing countries through the Adaptation & Resilience Investor Collaborative.

Adaptation & Resilience Investor Collaborative

Established in 2021, the Adaptation & Resilience Investors Collaborative is centred around three key workstreams: (i) physical risk assessment; (ii) adaptation & resilience (A&R) impact metrics and (iii) capital mobilization. Together these workstreams aim to help DFIs to identify, measure and mobilise financing for A&R impact. Clear and robust systems of measurement are essential for private sector entities to mobilise financing for adaptation and to quantify the positive adaptation & resilience impact such investments have on investees and wider stakeholders. Over the course of 2022-23, the A&R impact metrics workstream has: - Developed a model to define and apply A&R impact metrics - Identify use cases for this model and demonstrate its application across a diverse range of sectors and investments - Developed and piloted an A&R impact metrics approach for direct investments by DFIs. - Proposed an approach for using A&R impact metrics across a broader range of investment operations, focusing initially on financing intermediated by banks. - Engaged with impact investors on current practices and engaged with the Global Impact Investor Network (GIIN) as they develop Climate Adaptation & Resilience metrics for integration within the IRIS+ metrics framework, starting with four initial Strategic Goals.

Amplifying the impact of the “Challenge Programme for Adaptation Innovation” of the Global Environment Facility through learning and knowledge management The United Nations Industrial Development Organisation (UNIDO) is leading a GEF-financed knowledge management project, which aims to establish a learning and knowledge platform on adaptation innovation and financing. The project will convene three Communities of Practice alongside a fourth Community of Practice led by UNIDO to provide thought leadership, collate and manage project outputs, and convene project-wide meetings. These three Communities of Practice will aim to draw lessons on: 1. Investment Funds, led by the Global Adaptation and Resilience Investment (GARI) Working Group. 2. MSME Incubation and Acceleration, led by EIT Climate-KIC. 3. Climate Change Adaptation (CCA) impact metrics with private sector perspectives, led by UNEP FI.

The community of practice on adaptation impact metrics aims to draw together measurement practices from across the finance sector, creating a knowledge platform that enables adaptation impact metrics to be used with greater confidence across the finance sector and with greater transparency and compatibility across financial institutions. The programme will engage with ongoing initiatives that are engaging with adaptation metrics to: (i) build on existing work carried out under the Adaptation & Resilience Investors Collaborative – see above, (ii) support ongoing projects such as the piloting of the PRB Adaptation Target Setting Guidance, (iii) engage with other GEF-funded adaptation projects, and (iv) dialogue with the wider finance sector through webinars, workshops, and publications.

Project consultant role UNEP FI is looking for a consultant to lead on climate adaptation and resilience impact metrics for the private finance sector with a view to planning and developing the GEF-funded project workplan for 2024-25, as well as supporting the work of ARIC and the PRB. This will include four primary tasks:

1. Mapping and identifying a scope of work for the GEF-financed Community of Practice on Adaptation metrics
2. Drafting a detailed 2024-25 workplan for the GEF-financed Community of Practice on Adaptation & Resilience (A&R) Impact metrics
3. Continuing further development of A&R metrics with the Adaptation & Resilience Investors Collaborative (ARIC)
4. Engaging with the Principles for Responsible Banking (PRB) Adaptation Piloting Exercise 2024

Specific tasks and responsibilities:

Main tasks with their associated sub-tasks, covering all aspects of work to be done

0) Developing project timeline and refining activities and outputs for this contract

Sub-tasks: a. Review Terms of Reference for the current contract and refne the project activities and outputs b. Develop timeline (Gantt chart) with key activities, proposed meetings and outputs c. Submit to UNEP FI for approval

1) Mapping and identifying a scope of work for the GEF-financed Community of Practice on Adaptation metrics

Sub-tasks: a. Map stakeholders that need to be involved with A&R finance impact measurement from the real economy and finance sector. b. Identify metrics frameworks that need to be engaged with and incorporated into a mapping of finance sector A&R measurement methodologies, which may not be limited to A&R impact metrics but may also cover other relevant kinds of metrics such as physical climate risk metrics,adaptation finance metrics, SDG impact metrics, and nature/biodiversity-related metric relevant for A&R, and others as needed, in order to place A&R impact metrics clearly in context. c. Explore possible geographical focus areas for the project, identifying countries or regions with possible entry points for considering adaptation impact measurement in the financial system. This should balance the needs of project stakeholders, including the GEF, UNEP FI members, DFI members of ARIC, possibly the Network for Greening the Financial System (NGFS) while taking into consideration scope for engaging with global frameworks. d. Once identified geography(s), mapping out the country(s) context and key stakeholders, including current and future climate commitments, legal frameworks (e.g., NDCs and NAPs, mandatory regulation, etc.) and existing structures or initiatives (e.g., sustainable finance consortiums, industry associations, private sector initiatives, etc.) Identifying linkages and coordinating with other project Communities of Practice and existing UNEP FI initiatives. 2) Drafting a detailed 2024-25 workplan for the GEF-financed Community of Practice on Adaptation & Resilience (A&R) Impact metrics

Sub-tasks: a. Agree with UNEP FI on target stakeholders and geographies. b. Develop a project logical framework, with clear activities, outputs, outcomes, and impacts in line with the GEF CEO-endorsed project document. c. Outline a high-level workplan for the full two years of the project, including a detailed workplan for year 1. d. Agree on project outputs and necessary project resources with UNEP FI e. Identify a project timeline with key milestones

3) Continuing further development of A&R metrics with the Adaptation & Resilience Investors Collaborative (ARIC)

Sub-tasks: a. Reviewing feedback from the internal and external consultation on the December 2023 ARIC impact metrics final report b. Engage DFI members in the development of the GEF workplan, outlining the project concept and identifying areas where DFIs could support the project outcomes. c. Convene at least two workshops bringing together banks and DFIs to understand how the draft ARIC framework for A&R impact assessment in intermediated investments could be used by banks, and how DFIs can better understand the needs and constraints of banks. d. Maintain engagement with the Global Impact Investor Network (GIIN), particularly as the GIIN develops its implementation guidance e. Further research alignment with other evolving impact frameworks and engage as necessary to further increase wider industry and global applicability.

4) Engaging with the Principles for Responsible Banking (PRB) Adaptation Piloting Exercise 2024

Sub-tasks: a. Reviewing the draft PRB Adaptation Piloting workplan. b. Hosting at least two webinars with members of the Principles for Responsible Banking Climate Adaptation pilot group(s) covering, i. Introduction to impact metrics in the context of adaptation & resilience ii. Exploring how adaptation & resilience impact metrics could be used by banks and how such metric frameworks could be developed to be relevant and practical for banks iii. Overview of the ARIC proposed framework for adaptation & resilience impact assessment in intermediated investments through financial intermediaries such as banks c. Hosting two webinars to focus on use of metrics in specific sectors, with pilot sub-groups. d. Convene at least one workshop bringing together banks and DFIs (see above) e. Supporting the technical lead of the PRB Adaptation pilots with expertise on systems for measuring adaptation & resilience impacts.

The consultant shall be under the overall supervision of the Head of UNEP FI and report directly to the Climate Lead.

Qualifications/special skills

Education: A Master’s degree or equivalent is required in economics and/or finance, business, international relations, environmental studies, climate change. A First degree could be taken in lieu of advanced degree provided the selected candidate has 9 years of relevant experience.

Professional Experience: At least seven (7) year’s working experience in the financial services sector. Experience of building and managing relationships with external stakeholders. Experience of presenting and moderating conference calls and organising events/workshops. Experience of writing/editing technical reports.

Desirable: Programme management experience in international organizations, NGOs or consultancies. Experience working in the banking sector (commercial or development banking), preferably in the sustainable or green finance field.

Languages

Languages: English is the working language of UNEP FI. Knowledge of other United Nations languages is an asset.

Additional Information

Skills & Knowledge: Proven knowledge of the field of sustainable and climate finance is required, preferably in the field of climate adaptation and resilience. Proven knowledge of impact measurement frameworks for the finance sector, preferably in climate adaptation and resilience. Skilled in convening public and private sector stakeholders to create consensus or mobilise action. Ability to juggle varied activities in an organized and timely manner. Excellent communication skills (listening, spoken and written). Strong interpersonal and relationship management skills. Ability to translate new and diverse ideas and concepts into tangible outcomes, to identify and prioritize common interests in a diverse set of points of view. The incumbent is expected to work independently with minimal supervision and must have significant latitude to be self-directed and be highly motivated. Problem solving skills are desirable. An established network of sustainable finance decision-makers, influencers and practitioners is desirable. Fluency in written and spoken English required.

No Fee

THE UNITED NATIONS DOES NOT CHARGE A FEE AT ANY STAGE OF THE RECRUITMENT PROCESS (APPLICATION, INTERVIEW MEETING, PROCESSING, OR TRAINING). THE UNITED NATIONS DOES NOT CONCERN ITSELF WITH INFORMATION ON APPLICANTS’ BANK ACCOUNTS.