The G20 encourages jurisdictions that intend to develop their own alignment approaches to refer to a set of voluntary principles:

Principle 1: Ensure material positive contributions to sustainability goals and focus on outcomes;

Principle 2: Avoid negative contribution to other sustainability goals (e.g., through do no significant harm to any sustainability goal requirements);

Principle 3: Be dynamic in adjustments reflecting changes in policies, technologies, and state of the transition;

Principle 4: Reflect good governance and transparency;

Principle 5: Be science-based for environmental goals and science- or evidence-based for other sustainability issues; and

Principle 6: Address transition considerations.

Improve coordination at the regional and international level to facilitate the comparability, interoperability, and as appropriate the consistency of different alignment approaches, including via work of relevant IOs, and by encouraging:

Relevant international organizations, networks or initiatives to further advance work towards better understanding the technical aspects and interlinkages of existing and emerging alignment approaches, as well as good practices, and develop specific recommendations for enhanced comparability and interoperability.

Better integrate transition finance considerations into sustainable finance alignment approaches, with a focus on interoperability with existing and emerging approaches for sustainable finance, based on the mapping and review of existing and emerging approaches by the SFWG and appropriate IOs.

G20 and relevant IOs to identify opportunities to promote scaling up of climate and sustainable-aligned financial instruments, products and markets, including sustainable capital market instruments.

G20 to welcome the work program of the IFRS Foundation to develop a set of internationally consistent, comparable, and reliable baseline standards for disclosure of sustainability-related information on enterprise value creation. These standards should build on the TCFD framework and take into account the work of other sustainability reporting organizations, involving them and consulting with a wide range of stakeholders.

Building on the ongoing work on data gaps by FSB, Network of Central Banks and Supervisors for Greening the Financial System (NGFS), Organization for Economic Co-operation and Development (OECD), Bank for International Settlements (BIS), International Monetary Fund (IMF) and other IOs, take concrete steps to further advance sustainability data strategies, governance and architecture frameworks that aim to improve data quality and accessibility for the financial system, and promote greater access to public sustainability data, including by developing a shared digital platform to improve accessibility to relevant publicly available sustainability data which is already available.

Encourage work by relevant IOs on improving data quality, usefulness, and transparency of methodologies, such as metrics choices and weightings, from ESG rating agencies and other sustainability data providers.

Encourage ongoing work by relevant IOs to better understand the challenges and benefits to sustainability reporting for SMEs and emerging market economies, and consider ways to address them, including via more efficient use of available information, leveraging on digital technologies, and enhanced capacity building efforts.

Encourage relevant international organizations, networks, and initiatives to further advance the understanding of nature- and biodiversity related metrics and indicators used in disclosures by corporates and financial institutions.

Building on existing work, relevant international organizations, networks, and initiatives should over the short to medium term explore the potential financial risk and financial stability implications of climate risks, and, as appropriate, expand the coverage of risk analysis to include other sustainability risks such as nature- and biodiversity-related risks, over the medium term.

As key risks are identified, G20 central banks, ministries of finance, regulators, and supervisors are encouraged, on a voluntary basis, to coordinate through the FSB, standards-setters, NGFS, and other bodies, as appropriate, to effectively identify, measure and manage sustainability-related financial risks. This may include the development of consistent risk definitions, tools, and methodologies to assess financial sector exposure to sustainability risks, including for climate risks, and by making use on voluntary basis of the NGFS’s reference scenarios. This may also include coordination on supervisory activities on the measurement, management and reporting of sustainability risk exposures, including regulatory guidance and supervisory expectations.

SFWG will work with the G20 Framework Working Group (FWG) to enhance understanding of the macroeconomic implications of climate risks and climate policies, including the impacts on growth, inflation, employment, income distribution and the costs of transitioning both within and across jurisdictions, as well as the policy mix needed to mitigate these impacts.

Encourage MDBs to raise their ambition on climate action, including via:

Encourage IFIs, including MDBs, other relevant IOs, and public funds more broadly to mobilize private finance. This can be done through assisting developing country partners in helping domestic financial systems align with the goals of the Paris Agreement and national SDGs plans, developing blended financial instruments and mechanisms, engineering de-risking facilities, and taking other actions to eliminate barriers to sustainable investments with the objectives of promoting private sector investment in sustainability.

Appropriate IOs or international initiatives to develop a stock-take of emerging digital solutions supporting the mobilization of sustainable investments, covering environment, climate, and other sustainability goals, and identify ways to foster coordination and interoperability on those digital solutions. Key areas of focus could include digital applications in sustainability reporting (such as the use of structured data, where feasible and appropriate), identification and labelling of products and assets, as well as transactions of sustainable assets.

SFWG to work with appropriate IOs to develop high-level principles for a credible and consistent framework for financing a just climate transition. This work could map and review existing and emerging approaches, as appropriate, to:

IOs and other technical assistance providers should coordinate and align their capacity building efforts with the priorities identified in the Roadmap.