Introduction: The Climate Resilience Investment Framework (CRIF) and its Alignment with Global Sustainability Objectives

A report on the Climate Resilience Investment Framework (CRIF), released in June 2025, details a pivotal resource for investors. The framework is designed to facilitate the development of individual climate adaptation and resilience (A&R) plans, directly contributing to the achievement of the United Nations Sustainable Development Goals (SDGs), particularly SDG 13 (Climate Action).

Core Mandate: Addressing Physical Climate Risks in Investment Portfolios

The Imperative for Climate Action (SDG 13)

There is a recognized and increasing necessity for investors to manage physical climate risks. Research indicates that even if the objectives of the Paris Agreement are met, material risks to investment portfolios will persist. With current global mitigation efforts considered insufficient, the frequency and intensity of climate-related events are escalating. The CRIF provides a structured approach for investors to navigate this uncertainty and build resilience, a core target of SDG 13.

Unpriced Risk and its Impact on Sustainable Economic Growth (SDG 8)

A foundational premise of the CRIF is that physical climate risks are not yet appropriately priced into asset valuations. This discrepancy hides the true costs of climate change from asset owners, posing a threat to long-term financial returns and, by extension, sustainable economic growth as outlined in SDG 8. Proactive management of these risks is therefore a priority, as retreating from exposed sectors could shrink the investable universe and negatively impact financial performance. Physical climate risks translate into financial risks across four main categories:

• Credit Risk
• Market Risk
• Liquidity Risk
• Operational Risk

Framework Components and Methodologies for Sustainable Investment

A Non-Prescriptive Guide for Investors

The CRIF is intentionally non-prescriptive, offering recommended actions to inspire the development of A&R plans tailored to individual mandates and fiduciary duties. It provides guidance on key operational areas:

• Establishing appropriate internal governance and objectives.
• Conducting physical climate risk assessments.
• Identifying suitable adaptation measures to improve resilience.
• Utilizing systems stewardship to create an enabling environment for investment.

The Physical Climate Risk Appraisal Methodology (PCRAM)

The framework’s target-setting methodology is underpinned by the Physical Climate Risk Appraisal Methodology (PCRAM). This case study-led resource supports investors through a cyclical process of identifying material risks, exploring adaptation options, and analyzing the optimal path forward. A key principle of PCRAM is proportionality, encouraging investors to climate-inform decisions to the maximum practical extent, while acknowledging barriers such as data quality or ownership structures.

Sectoral Focus on Resilient Infrastructure and Sustainable Cities (SDG 9 & SDG 11)

The initial version of the CRIF offers specific guidance for the real estate and infrastructure sectors, with future expansion planned for sovereign, sub-sovereign, and corporate assets. This focus directly supports the aims of SDG 9 (Industry, Innovation and Infrastructure) and SDG 11 (Sustainable Cities and Communities) by promoting investment in resilient and sustainable physical assets.

Fostering Systemic Resilience through Multi-Stakeholder Collaboration

The Limits of Unilateral Investor Action

The report acknowledges that investors face limitations in managing physical climate risks and opportunities in isolation. Many essential adaptations, such as large-scale infrastructure projects, are public goods that the private sector cannot finance alone. Therefore, policy advocacy and broad stakeholder engagement are fundamental components of effective A&R plans.

Building Partnerships for the Goals (SDG 17)

To create an enabling environment that unlocks private investment, robust collaboration is essential, reflecting the principles of SDG 17 (Partnerships for the Goals). Engagement is required with a wide range of stakeholders:

• Policymakers: To ensure public investment complements and unlocks private capital.
• Data Service Providers: To identify and understand material physical climate risks.
• Clients and Beneficiaries: To educate on the importance of assessing risks and recovering costs.
• Insurers and Lenders: To ensure that investment in resilience is appropriately rewarded.

A Dual-Track Approach: Integrating Adaptation and Mitigation

Complementary Strategies for Comprehensive Climate Action

The framework advocates for a dual-track approach, viewing climate adaptation and mitigation as complementary and interconnected priorities. Mitigation efforts must account for the consequences of climate change; for example, the mitigation potential of renewable energy investments, crucial for SDG 7 (Affordable and Clean Energy), is influenced by their operational efficiency and lifespan, which can be affected by climate impacts. Conversely, adaptation alone does not address the root cause of climate change.

Synergy with the Net Zero Investment Framework (NZIF)

To facilitate integrated strategies, the CRIF shares a common structure, concepts, and recommended actions with the Net Zero Investment Framework (NZIF). This alignment is designed to help investment, risk, and sustainability professionals comprehensively manage all material climate risks and opportunities, fostering a holistic contribution to global climate and sustainability objectives.

Analysis of Sustainable Development Goals (SDGs) in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 13: Climate Action
   • The entire article is centered on this goal. It discusses the urgent need for investors to manage “physical climate risks” due to rising global temperatures and to develop “climate adaptation and resilience plans.” The Climate Resilience Investment Framework (CRIF) is presented as a tool to take action against the impacts of climate change.
2. SDG 9: Industry, Innovation and Infrastructure
   • The article explicitly states that the first version of the CRIF “offers guidance for real estate and infrastructure.” It focuses on making these assets resilient to climate impacts, which directly aligns with the goal of building resilient infrastructure.
3. SDG 11: Sustainable Cities and Communities
   • By focusing on improving the resilience of “real estate and infrastructure,” the article addresses a core component of sustainable cities. Making buildings and infrastructure systems resistant to climate-related events is crucial for creating safe and resilient human settlements.
4. SDG 17: Partnerships for the Goals
   • The article strongly emphasizes collaboration. It states that “Policy advocacy and wider stakeholder and market engagement will be fundamental” and that investors cannot manage risks alone. It calls for engagement with policymakers, data providers, insurers, and lenders to create an “enabling environment,” which is the essence of building partnerships for sustainable development.
5. SDG 7: Affordable and Clean Energy
   • The article connects climate adaptation with mitigation efforts by mentioning “renewable energy investments.” It notes that the “efficiency and life expectancy” of these investments can be affected by climate change, highlighting the need to build resilience into clean energy infrastructure.
6. SDG 8: Decent Work and Economic Growth
   • The framework aims to protect long-term economic value by managing climate-related financial risks. The article notes that physical climate risks manifest as “credit, market, liquidity, and operational” risks and that failing to manage them could “negatively impact long term financial returns,” thereby linking climate resilience to sustainable economic stability.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 13.1: Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries.
   • The CRIF is designed precisely for this purpose. The article states it helps investors “identify suitable ‘adaptations’ to improve resilience to impacts” and develop “individual adaptation and resilience (A&R) plans.”
2. Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure…to support economic development and human well-being.
   • The article directly supports this target by providing a framework for investors to assess and improve the climate resilience of their “infrastructure” assets, ensuring they can withstand increasing physical climate risks.
3. Target 11.b: By 2020, substantially increase the number of cities and human settlements adopting and implementing integrated policies and plans towards inclusion, resource efficiency, mitigation and adaptation to climate change, resilience to disasters…
   • Although the 2020 deadline has passed, the article’s focus aligns with the ongoing objective of this target. The CRIF provides a mechanism for implementing resilience plans for “real estate and infrastructure,” which are the building blocks of cities and human settlements.
4. Target 17.17: Encourage and promote effective public, public-private and civil society partnerships…
   • The article calls for this directly, stating that “engagement is needed to ensure that public investment unlocks private investment.” It also highlights the necessity of investors engaging with a wide range of stakeholders, including “data service providers,” “insurers and lenders,” to create an “enabling environment.”

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Indicator for Target 13.1: Development and implementation of adaptation and resilience (A&R) plans.
   • The article presents the creation of “individual adaptation and resilience (A&R) plans” by investors as a key outcome of using the CRIF. The number of investors or the value of assets covered by such plans would be a direct measure of progress.
2. Indicator for Target 13.1: Implementation of adaptation options for material risks.
   • The article distinguishes between identifying risks (a “minimum expectation”) and the “Implementation of adaptation options,” which is promoted as “best practice.” Tracking the number of adaptation measures implemented would serve as a clear indicator of action.
3. Indicator for Target 9.1 & 11.b: Percentage of infrastructure and real estate assets assessed for physical climate risks.
   • The article promotes the use of the “Physical Climate Risk Appraisal Methodology (PCRAM)” to “identify physical climate risks” and “understand their materiality.” The proportion of an investment portfolio (specifically in infrastructure and real estate) that has undergone such an assessment is a quantifiable indicator.
4. Indicator for Target 17.17: Number and type of stakeholder engagements to create an enabling environment.
   • The article implies this indicator by stressing the need for “Policy advocacy and wider stakeholder and market engagement.” Progress could be measured by tracking engagements with policymakers, data providers, and lenders aimed at ensuring “resilience investment is rewarded.”

4. Summary Table of SDGs, Targets, and Indicators

Source: iigcc.org