More than a decade ago, KfW started to incorporate climate risk data in its project design. In these early days, the 74 so-called Climate Fact Sheets with country-level current and future climate information were developed for all partner countries, with an update in 2016. Today, the so-called climate mainstreaming process is mandatory for each project. Regarding physical climate risk, a stepwise approach is applied to check for resilience through the project, resilience of the project, and maladaptation. The process starts with a screening of climate hazards, followed by a detailed analysis of the climate risks.
Given the timespan since its last revision, the climate fact sheets are not based on the latest science and are perceived as too complex by users. Regarding the in-depth climate risk analysis, the current guidance provided to project teams is rather limited.
The objectives of the assignment at hand are to improve the compliance and quality of the climate mainstreaming process on adaptation risks and potentials and, thereby, the overall resilience of KfW's investments and partner institutions. The results of the assignment should be made publicly available as much as legally possible.
