As part of the Institute of International Finance's new line of sustainability-themed research, it is launching a series of short “back-to-basics” notes, aiming to bring some clarity to the complex ecosystem of climate data, risk assessment methodologies, taxonomy and reporting.

Sustainable Finance is an increasingly important matter since the Paris Agreement in 2015. Because it influences all sectors, it is a great opportunity to face the challenges of tomorrow. However, it is still a complex ecosystem.

In order to ring clarity to this subject, the Institute of International Finance is launching a series of short "back-to-basics" notes.

The first one focuses on the Sustainable Finance Pyramid, a construction of blocks aiming to bring a better understanding of ESG (Environmental, social and corporate governance) risks and opportunities.

In the next editions, the Institute of International Finance will focus on:

• What is climate/ESG data and why is there so much focus on it?
• What are the new metrics and methodologies to assess climate risk and opportunities—who’s got answers?
• How do we agree on definitions for sustainable finance and investment terminology, and align on taxonomy?
• What does good climate-related disclosure look like, and do we need a standardized approach to accounting and reporting?
• Toolkit in hand, how can we track sustainable finance flows—and critically, assess progress towards transition and financing the SDGs?