Climate Risk in MSME Finance: Building Resilience
Blue Marble joins ADB, UNEP FI-V20 SIF, and financial sector partners in Cambodia to advance climate risk assessment and strengthen MSME financial resilience.
Climate risk in MSME finance is becoming an increasingly important consideration for financial institutions serving micro, small, and medium-sized enterprises (MSMEs). Floods, extreme rainfall, and heat can disrupt business operations, reduce income, and affect borrowers’ ability to meet loan repayments. Understanding these risks is essential to developing more resilient lending portfolios and supporting the businesses that depend on them.
On 22 October, Blue Marble joined the Asian Development Bank (ADB), the United Nations Environment Programme Finance Initiative (UNEP FI) V20 Sustainable Insurance Facility (SIF), and financial sector stakeholders in Phnom Penh, Cambodia, for the National Dissemination Workshop on Building Climate Resilience in MSME Finance.
The workshop provided an opportunity to share project findings, demonstrate practical tools, and explore how climate risk insights can inform financial decision-making.
Turning Climate Risk Insights into Financial Strategies
Working closely with Cambodia Post Bank, the initiative explores how financial institutions can use climate risk data to identify vulnerabilities within MSME lending portfolios and develop more informed financial strategies.
The work focuses on four priorities:
Identifying climate vulnerabilities: Understanding how exposure to climate hazards can affect MSME borrowers and lending portfolios.
Supporting informed financial decisions: Translating climate risk assessments into actionable insights for financial institutions.
Strengthening business resilience: Helping financial institutions support MSMEs in preparing for and responding to climate-related disruptions.
Exploring financing and risk transfer solutions: Assessing approaches suited to different levels of climate risk exposure.
A key highlight of the workshop was the demonstration of the Climate Risk Visualization Dashboard, illustrating how geographic climate risk information can support financial institutions in assessing exposure and informing lending decisions.
Advancing Financial Resilience Across South Asia and Southeast Asia
The initiative extends beyond Cambodia. Blue Marble is supporting financial institutions across Cambodia, Sri Lanka, and Nepal in connecting climate risk analysis with practical financial resilience strategies.
Through collaboration with development organizations and financial institutions, Blue Marble contributes to approaches that translate data-driven insights into practical risk management and financial protection strategies.
This work reflects Blue Marble’s commitment to inclusive insurance innovation, strategic partnerships, and strengthening the resilience of underserved businesses and communities.
Understanding climate risk is an important first step. Turning that understanding into informed financial action is essential to building long-term resilience.
Blue Marble thanks ADB, UNEP FI-V20 SIF, Cambodia Post Bank, and all participating stakeholders for their contributions to the workshop and ongoing collaboration.
