Opportunities for delivering risk-informed investment: Addressing the barriers

Building on previous work for risk-informed investment in the European region, this report aims to support the delivery of risk-informed investment by those who make investment decisions, primarily in the financial services sector, and also for those who regulate and set policies in this sector. The report documents the progress that has been made and the barriers that need to be overcome for risk-informed decisions to be taken.

The report recommends eight actions to improve the integration of disaster risk reduction (DRR) in investment decision making:

1. Develop a work programme which aims to improve access to disaster risk data platforms to enable public and private sectors to better access base data on a wider range of disaster risks.
2. Demonstrate the costs of disasters and the value of resilience measures.
3. Develop information and guidance materials to demonstrate how DRR considerations can be included in financial decision making and supervision, public spending and budgets.
4. Develop thought leadership and guidance on the emerging information on legal liabilities and duties covering risk disclosure by companies and their banks and investors.
5. Build the evidence base and expose regulatory obstacles to risk-informed investments.
6. Strengthen oversight and supervision of disaster risks by reporting frameworks, organisations and standards setters, and through investor engagement.
7. Reset the narrative to make clear that risk informed investment and Sendai Framework achievement is central to financial stability in the climate transition for sustainable development.
8. Cultivate the shared understanding and acceptance of the need for the financial sector to integrate DRR into decision making