This comprehensive playbook, developed by the Coalition for Disaster Resilient Infrastructure (CDRI) in partnership with The Rockefeller Foundation, serves as an essential guide for financial institutions (FIs) navigating the escalating threats of physical climate risks. Targeted at low- and middle-income countries (LMICs), it outlines strategies to integrate climate considerations into governance, risk management, and investment decisions, emphasizing resilience in infrastructure financing.

The document explores how extreme weather events impact FIs through asset damage, loan delinquencies, and economic disruptions. It introduces practical frameworks like the Hazard-Exposure-Vulnerability (HEV) model and CDRI's Global Infrastructure Risk Model and Resilience Index (GIRI) platform for assessing risks across sectors such as power, transport, and water. Key phases of risk assessment are detailed, from defining objectives to interpreting results, enabling FIs to quantify metrics like Average Annual Loss and Climate Value-at-Risk. Real-world case studies, including initiatives from the India Initiative on Climate Risks and Sustainable Finance (IICRSF) and Union Bank of India, demonstrate successful integration. The playbook highlights opportunities in green finance while addressing challenges like data scarcity and standardization. CDRI's role in knowledge sharing, technical assistance, and data platforms is emphasized to catalyze macro-level action.