The Network for Greening the Financial System (NGFS) is a network of central banks and supervisors who have come together to move towards creating sustainable finance systems. The Network was established by eight central banks at the 2017 Paris "One Planet Summit". Membership reflects a political commitment toward sustainable finance and has grown across five continents since its establishment, now with 66 members.

The NGFS defines and promotes best practices to be implemented within and outside of the membership and conducts or commissions analytical work on green finance. The NGFS’ work includes assisting with mapping climate-related risks to future supply and demand, green bond labelling, and preventing greenwashing to ensure the transition to a stable economy. Members work within three 'Workstreams' (microprudential; macrofinancial; and scaling up green finance) to gather research on systems and implement change to assist with the transition to a low-carbon economy.

In 2019, the Network produced a comprehensive report identifying six recommendations for central banks and supervisors to facilitate green finance including integrating sustainability factors into the management of some of the portfolios they control (own funds, pension funds, and reserves). More recently, in June 2020, NGFS published a first set of climate scenarios for forward looking climate risks assessment alongside a user guide, and an inquiry into the potential impact of climate change on monetary policy.

Clyde & Co is running a virtual legal hackathon between 1 July and 4 August 2020 in partnership with The Chancery Lane Project. This post is part of a series of updates posted during the hackathon on business-relevant climate initiatives and innovative solutions to some of the challenges arising from climate change.