This Operationalization Framework is based on the premise that aligning with the objectives of the Paris Agreement is a comprehensive strategic process. It implies that financial institutions adapt internal priorities and procedures to make all their activities ‘consistent’ with the Paris Agreement as soon as possible and support the transformation of activities and value chains across sectors and countries.
This operationalization framework is designed to serve as an initial guide to assist IDFC members in the operationalization of their commitment. It is structured around the six principles of the 2018 IDFC position paper that lays out how members aim to achieve their alignment commitment. It provides guidance on tools and approaches across four main principal questions around Paris alignment:
• Objectives: What concrete outcomes does my institution aim to achieve?
• Key aspects: What are the key aspects of each type of tool, what aspects do I need to pay attention to when using this type of tool? What changes may need to occur within my institution and who needs to be involved? What information do I need?
• Existing Approaches and Tools: What approaches and tools are available to make these changes? What are their strengths and weaknesses, how do they address the different dimensions of Paris-alignment?
• Use recommendations for Paris-alignment: What do I need to consider if I want to implement the principle to be fully Paris-aligned?
As Paris alignment is a dynamic process, this operationalization framework will need to be revised, adapted, and further developed over time as IDFC members progress in this alignment journey and as new tools and approaches emerge.