As the financial sector adapts to the realities of climate change, one message is clear: climate risk is financial risk. Banks, insurers, and investors are now expected to measure and manage environmental and social risks as carefully as traditional financial metrics. To support this shift, the United Nations Environment Programme Finance Initiative (UNEP FI) created the Sustainability Risk Tool Dashboard. The dashboard serves as a global reference for solutions that help finance professionals integrate environmental and social risk considerations into their decision-making.
In 2025, RS Metrics was included in the dashboard for the first time. Three ESGSignals® solutions were listed, covering physical, nature, and transition risk data, which indicates a growing demand for objective, asset-level data that supports sustainable finance.
What Is UNEP FI?
Launched in 1992, UNEP FI was created through a partnership between the United Nations Environment Programme and global financial institutions. Its early mission focused on bringing banks, investors, and insurers into discussions on sustainable development. Today, the initiative has grown into a network of more than 500 institutions that support the integration of sustainability into financial systems (Source: About Us – United Nations Environment – Finance Initiative).
In addition, UNEP FI works with governments and regulators to align financial activity with long-term environmental goals. Through programs such as the Principles for Responsible Banking and the Principles for Sustainable Insurance, UNEP FI has been crucial in shaping and transforming market practices. The initiative bridges the gap between global sustainability targets and the tools that financial institutions need to meet them.
The Purpose of the Risk Tool Dashboard
The UNEP FI Sustainability Risk Tool Dashboard was designed to strengthen risk assessment in sustainable finance. It allows organizations to identify tools that track and manage climate, environmental, and social risks. These include physical threats like flooding, wildfires, and extreme heat as well as risks tied to social or economic change. The dashboard organizes tools by risk type, region, or application. As a result, it is easier for institutions to navigate the fast-growing market for environmental and climate risk data (Source: Database: Sustainability Risk Tool Dashboard).
Why the Dashboard Matters for Financial Institutions
UNEP FI enables the financial sector to adapt to new regulations as more countries introduce climate-related disclosure and risk management policies. Through its Policy and Regulation workstream, UNEP FI promotes clear communication between financial institutions and regulators. This approach helps make new sustainable finance rules more grounded in real market needs (Source: Policy and Regulation – United Nations Environment – Finance Initiative).
The Sustainability Risk Tool Dashboard highlights trusted tools for managing sustainability risks. Banks, insurers, and investors can access clear metrics that support compliance and help reduce environmental and climate risks in their strategies. In a fast-growing market for environmental data, it brings transparency and structure by creating effective and relevant solutions.
Published four times a year, it gives financial institutions timely access to tools that reflect the latest advances in risk management. This consistent update cycle makes the dashboard a reliable source for resources that meet both regulatory requirements and rising market expectations.
ESGSignals® and the Role of Physical Risk Data
Among the tools listed in the dashboard is ESGSignals® Physical Risk Data by RS Metrics. Featured in the Physical Risk category, it provides detailed, asset-level insights into exposure to climate and environmental hazards. By combining satellite-based analytics with frequently updated indicators, ESGSignals® allows financial institutions to assess location-specific risks across entire portfolios. The dataset includes key metrics such as heatwave and cold wave frequency, wildfire probability, and proximity to biodiversity hotspots.
With these insights, institutions gain a clearer view of climate vulnerabilities at the asset level. This enables them to integrate physical risk data directly into investment analysis and risk management strategies.
Supporting Sustainable Finance
The UNEP FI Sustainability Risk Tool Dashboard supports the integration of sustainability into financial decision-making. As global regulations tighten and investor expectations evolve, financial institutions need reliable tools to measure and act on climate risk. By offering trusted resources, UNEP FI makes sustainable finance more achievable and better aligned with long-term risk management goals.
This piece was written by Divya Sharma, a Product Marketing Intern at RS Metrics. She is currently pursuing a degree in International Studies at the University of Wisconsin–Madison, with a focus on International Business and Sustainability. Her interests include ESG strategy, social impact, and advancing responsible business practices.
