responsAbility Expands Climate Finance Strategy to Include Climate Adaptation Finance

Zurich, 7 August 2025 – Swiss impact asset manager responsAbility is expanding its Climate Finance strategy to complement its primary focus on climate mitigation with a dedicated adaptation finance component. This additional focus aims to support partner financial institutions (FIs) in developing countries in addressing the increasing impacts of climate change.According to the United Nations Environment Programme (UNEP)¹, developing countries require around USD 387 billion annually to meet their adaptation priorities – nearly 20 times the current funding levels. responsAbility's new focus is designed to help close this critical gap.

Since 2009, responsAbility’s Climate Finance strategy has financed renewable energy and energy efficiency projects that achieve more than 20% energy or CO₂ savings relative to a baseline scenario in which the financed intervention did not take place. While climate mitigation remains a global priority, concerns are growing that the world will not succeed in limiting global warming to 1.5–2.0°C above pre-industrial levels. This is exacerbating both acute and chronic climate risks, including more frequent flooding, wildfires, water scarcity, and extreme heat, particularly in countries that have contributed least to global emissions but are among the most vulnerable.

responsAbility is a pioneer in climate finance in emerging markets

With over a decade of experience in climate finance, responsAbility brings deep expertise and a strong track record to this new strategic focus. As a pioneer in the field since 2014, the company has successfully deployed climate mitigation capital through financial institutions in emerging markets—regions that are now most affected by the consequences of a changing climate. This positions responsAbility uniquely to address the growing need for climate adaptation in these countries, where the financing gap is widest and the potential for impact is greatest.

Scaling private sector action for adaptation finance

To close the gap in adaptation finance needs, both private sector mobilization and effective implementation are needed. The strategy will rely on a unique hands-on approach including in-house technical advisory support and external consultants financed through its technical assistance facility to build the capacity of FIs to manage climate risks and deploy capital for adaptation finance, providing a proof-of-concept that can be leveraged by other public and private sector investors.

Key elements of the adaptation finance strategy

• Target partner institutions: The adaptation strategy will be rolled out to partner FIs in countries that are expected to face significant impacts from climate change. The Climate Finance Strategy team will support partners in developing a climate risk assessment and adaptation strategy at the institutional level, as well as implement adaptation initiatives for projects in target sectors in their loan portfolios.

• Target sectors: Adaptation investments will focus on construction, agriculture, and water treatment, based on both exposure to climate risks and commercial potential.

• Gradual rollout: Implementation will begin in four countries and expand over time, building on responsAbility’s established partnerships with financial institutions in over 30 markets.

Strengthening climate resilience in emerging markets

By leveraging these partnerships, responsAbility aims to facilitate greater uptake of adaptation finance in regions where resilience is urgently needed, complementing its continued mitigation efforts.

¹United Nations Environment Programme: Adaptation Gap Report 2024