Adaptation and Resilience Investors Collaborative

Increasing the climate resilience of communities, businesses, physical and natural assets against the adverse effects of climate change is an urgent priority and collaboration is essential to deliver the systemic change needed to close the adaptation finance and action gap at the scale and pace required.

The Adaptation and Resilience Investors Collaborative (ARIC) is an international partnership of development finance institutions working together to accelerate and scale up private investment in climate adaptation and resilience in developing countries. To unlock investment in climate adaptation and resilience, members of the group have joined forces to build know-how, develop pipelines of bankable investments, and support early-stage ventures with innovative climate adaptation and resilience solutions.

Technical workstreams

The Adaptation and Resilience Investors Collaborative has established three technical workstreams to deliver on its objectives, and enable progress on critical areas needed to build and demonstrate the business case for investing in climate adaptation and resilience;

1. Physical climate risks assessment to enable the systematic identification of opportunities for building climate resilience.
2. Investor-relevant metrics for adaptation and resilience to measure and demonstrate the benefits of investing in climate adaptation and resilience building solutions. Click here to read more about adaptation and resilience impact metrics.
3. Capital mobilisation approaches, through which development finance institutions can increase their awareness about business models, financing structures and avenues.

The workstreams include the potential for learnings to be shared among private sector financial institutions and impact investors and will strive to achieve the Collaborative’s COP26 Pledge to:

• Adopt common principles for tracking finance for climate adaptation and resilience.
• Disclose the volume of finance committed to climate adaptation and resilience on an annual basis.
• Continue collaboration between development finance institutions towards the adoption of standardised approaches for measuring the contribution of their investments towards adaptation and resilience impact goals.
• Develop common good practice approaches for identifying, assessing, and managing physical climate risk, including tools for engaging with counterparties.

To find out more, read the ARIC’s founding Declaration at the 2020 Finance in Common Summit and access ARIC’s 2023 G7 Progress Report.

Technical outputs

1. The Physical Climate Risk Investor Playbook, providing investors with a step-by-step approach to integrate the identification, assessment and management of physical climate risks in the investment process. Access the playbook here.
2. Investor-relevant metrics for adaptation and resilience: In 2024, ARIC delivered a framework for measuring the impact of investments on climate adaptation and resilience. Access the report here.
3. Capital mobilisation approaches: coming soon

Members

The Adaptation and Resilience Investors Collaborative was formed at the Finance in Common Summit in 2020, bringing together four founding partners:

• Agence Française de Développement (AFD)
• CDC Group (now British International Investment, or BII)
• Foreign, Commonwealth and Development Office (FCDO)
• Global Center on Adaptation (GCA)

The Collaborative has since expanded to include eighteen members in total, including bilateral development finance institutions, multilateral development banks, government aid agencies, and global institutions focusing on adaptation and innovation: