Tenders Are Invited For Consulting Firm For Training On Climate Risk For Financial Institutions In Nepal

Expression of Interest for Consulting Firm for Training on Climate Risk for Financial Institutions in Nepal Nepal is highly exposed to climate-related hazards. Its mountainous geography, climate-sensitive livelihoods, infrastructure gaps, and dependence on natural resources amplify the economic and financial effects of floods, landslides, droughts, heat, glacial hazards, and changing precipitation patterns. These risks can affect borrowers revenues, asset values, collateral, supply chains, and debt-servicing capacity, and can transmit to financial institutions through credit, market, liquidity, operational, and strategic risk channels. Nepal has committed to a low-carbon and climate-resilient development pathway. Its Long-Term Strategy targets net-zero carbon emissions by 2045. The Government of Nepal is also advancing a Green, Resilient, and Inclusive Development approach, while the financial sector will be expected to play a central role in mobilizing capital for mitigation, adaptation, and resilience. Nepal Rastra Bank (NRB) has progressively strengthened the sustainable finance framework. The Environmental and Social Risk Management Guidelines for banks and financial institutions were updated in 2022 to include climate-related risk considerations. In 2024, NRB issued the Nepal Green Finance Taxonomy, which provides a classification framework across climate change mitigation, climate change adaptation, natural resource conservation and management, and pollution prevention and control. The disclosure landscape is also evolving. In April 2026, the Accounting Standards Board Nepal issued exposure drafts for NFRS S1, General Requirements for Disclosure of Sustainability-related Financial Information, and NFRS S2, Climate-related Disclosures, aligned with the global baseline standards developed by the International Sustainability Standards Board. This creates a timely need for Nepalese financial institutions to strengthen governance, risk identification, scenario analysis, metrics, targets, data systems, and decision-useful disclosures. IFC is supporting Nepals financial sector to enhance resilience to climate-related financial risks and mobilize green finance. IFC and the Nepal Bankers Association (NBA) have established a collaboration that includes a climate risk management maturity assessment, roadmap development, sector-level capacity building, and training for NBA members. The proposed training under this Terms of Reference will complement those initiatives and provide practical, Nepal-specific guidance to banking professionals. 2. Objective of the Assignment IFC seeks to engage a qualified firm to design and deliver a practical, two-day, in-person training on climate-related financial risk for financial institutions in Nepal. The training will strengthen participants ability to: · Understand the principal physical and transition risk drivers and their transmission to conventional financial risks. · Integrate climate-related considerations into governance, strategy, risk appetite, policies, credit processes, portfolio monitoring, internal controls, and management information. · Understand approaches to climate scenario analysis and stress testing, including the link to capital and liquidity planning. · Interpret Nepals evolving policy, regulatory, taxonomy, and disclosure environment alongside international good practice. and · Identify practical, sequenced actions that institutions can take to strengthen climate risk management and disclosure readiness. 3. Scope of Work The responsibilities of the firm will include, but are not limited to, (a) supporting program planning, (b) curriculum development, (c) Nepal-specific contextualization, (d) training session delivery, (e) participant assessment, (f) feedback collection, and (f) post-training reporting. The firm will also be responsible to verify logistics including the set-up, sound, audio, visuals, and equipment, prior to the commencement of each training session and ensure that the registration desk is staffed and operational. The scope will include the following workstreams. A. Content development (i) Design a training curriculum tailored for banking professionals in Nepal, likely risk management and sustainability professionals. The content should be developed and delivered in English language. (ii) Prepare content covering, but not limited to, the following topics: a. Introduction to Climate Risk in Financial Institutions 1. Types of climate-related risks 2. Impact of climate risk on financial risks in commercial banks: transmission channels with 2-3 case examples 3. Climate scenarios selection and measuring climate risks in different scenarios b. Climate Risk Strategy, Governance, and Management 1. Governance of climate risks vs. Governance of Sustainability with case examples 2. Climate-related risks integration into strategy, Risk Appetite Statements and KRIs with case examples c. Regulatory and Policy Environment 1. Emerging issues and trends in regulatory approaches to climate risks 2. Sustainability reporting/disclosures and Climate Risk-related reporting/disclosure (IFRS vs NFRS ) d. Portfolio emissions and Target setting 1. Portfolio emission measurement and methodology i.e. Partnership for Carbon Accounting Financials (PCAF). 2. Overview of target setting, including net zero transition and the Science-Based Targets Initiative (SBTi) approaches. 3. Stress testing: Macro vs Micro approaches- Issues and Challenges e. Practical next steps and strategy for FIs in Nepal- translating the training insights into concrete actions that financial institutions can realistically implement. (ii) Ensure content integrates international best practices, while grounding the material in Nepals specific policy, regulatory, and market context. Case studies and examples should include relevant insights from Nepal and comparable markets to enhance practical understanding and regional applicability. The training is expected to be interactive with group discussion and exercises. (iii) Design learning certificates in accordance with IFC branding guidelines. B. Training delivery (i) Facilitate a two-day in-person workshop in Nepal for banking sector participants, likely risk management and sustainability professionals. (ii) Use interactive learning techniques, including presentations, case studies, group discussions, and interactive exercises. (iii) Provide all training materials including slide decks, handouts, and reference guides. C. Reporting and monitoring (i) Develop and administer pre-training and post-training assessments to gauge participants understanding and retention of key concepts, enabling evaluation of the trainings effectiveness and knowledge enhancement. (ii) Facilitate participant feedback through structured evaluation forms (iii) Compile and submit a brief post-training report summarizing key outcomes, feedback, and recommendations. (iv) Support IFC issue certificates to participants who have completed the training. Tender Link : https://wbgeprocure-rfxnow.worldbank.org/rfxnow/public/advertisement/7292/view.html