IFC updates CAFI platform to help financial institutions measure climate impact
IFC, a member of the World Bank Group, has updated its first-of-a-kind online climate impact measurement platform to make it easier for financial institutions to assess the climate eligibility of their investments and estimate the development impact of their climate-related activities.
Version 2.1 of the Climate Assessment for Financial Institutions (CAFI) platform provides users with new insights through rich graphics, enhanced climate metrics, and improved key performance indicators. Users in low-bandwidth countries will benefit from a new “CAFI Lite” feature. The platform incorporates feedback from IFC’s industry experts and the broader community of financial institutions.
Today, 120 financial institutions have access to CAFI, with $5.8 billion of climate disbursed loans reported through the platform. The resulting impact captured through CAFI is an annual reduction of 12.1 million tons of carbon dioxide equivalent, 26.2 GWh of renewable energy generated, 1.1 million square meters of green area built, and 1.7 million cubic meters of water saved.
“Impact investing can grow when investors seek companies that apply best-practice impact measurement platforms like CAFI,” said Paulo de Bolle, Global Director of IFC’s Financial Institutions Group. “By providing CAFI to market players within the financial services industry, IFC is able to set new standards and educate stakeholders on impact disclosure.”
CAFI will continue to grow and evolve with the climate finance sector. It will be updated to ensure its climate metrics and eligibility criteria stay in line with IFC’s Definitions for Climate-Related Activities and IFC’s GHG Reduction Accounting Guidance for Climate-Related Projects.