The Central Banks and Supervisors Network for Greening the Financial System (NGFS) was established by eight central banks and supervisors at the Paris “One Planet Summit” in December 2017. As of 2021, the membership of the Network has grown across five continents into a group of 105 central banks and supervisors and 16 observers. Together, they represent five continents and over 85% of global greenhouse gas emissions and are responsible for the supervision of all of the global systemically important banks and two thirds of global systemically important insurers.

Members work on a voluntary basis to share best practices and contribute to the development of environment and climate risk management in the financial sector. In addition, members work to mobilise mainstream finance to support the transition toward a sustainable economy.

The NGFS is a member-based organisation which serves as a voluntary platform and forum for authorities to exchange views and best practices around climate related risks for the financial sector and the development of green finance. NGFS has the ultimate purpose of meeting the goals of the Paris Agreement to mobilise green investments and manage financial system risks. To achieve this purpose, the Network defines and promotes best practices to be implemented within and outside of the Membership of the NGFS and commissions or conducts analytical work on green finance. NGFS holds multiple conferences every year in different countries (such as Budapest, Bali, and Kuala Lumpur) mainly to discuss sustainable finance issues. It has produced many publications including annual reports on its website. In addition, the NGFS Climate Scenarios were produced over a period of six months by NGFS Workstream 2 in partnership with an academic consortium. These scenarios were developed to provide a common starting point for analysing climate risks to the economy and financial system.

Purpose:

To help strengthen the global response required to meet the goals of the Paris agreement and to enhance the role of the financial system to manage risks and to mobilise capital for green and low-carbon investments in the broader context of environmentally sustainable development.