NGFS (Network for Greening the Financial System)

The Network for Greening the Financial System (NGFS) is a global coalition of central banks and financial supervisors committed to addressing climate-related risks in the financial sector. Established in 2017, the NGFS develops climate scenarios and provides guidance on integrating climate considerations into financial decision-making. Its scenarios, updated regularly, explore various climate pathways and their economic impacts, ranging from orderly transitions to disorderly and "hot house world" scenarios. These scenarios have become a key reference for climate risk assessment and are widely used in regulatory stress tests and corporate climate scenario analysis. The NGFS scenarios play a crucial role in helping financial institutions and companies meet climate reporting requirements under frameworks like the ISSB standards.

For a detailed analysis of how NGFS scenarios translate into financial risk for companies, see our article on Climate Scenario Analysis for the ASX300.