S2 EP8 - How Can Financial Institutions Climate-Proof Their Portfolios? Insights from Andrée Simon (FINCA Global CEO) and Peter Zetterli (Green Lead, CGAP)

Climate shocks are intensifying, and inclusive financial institutions are caught in the crossfire. As extreme weather events grow more frequent and severe, MFIs and inclusive banks face a dual challenge: protecting portfolio quality while continuing to support the clients who need them most.This episode takes a hard look at what happens when climate disaster strikes. Severe flooding in Pakistan wiped out livelihoods, disrupted local economies, and laid bare the fragility of financial systems serving climate-vulnerable communities. In the aftermath, around 40% of MFIs in the country reduced or paused lending to climate-affected sectors - decisions that compounded financial stress for households and slowed recovery at precisely the moment finance was needed most.Grounded in local stories and global evidence, Jack is joined by Peter Zetterli, Green Lead at CGAP, and Andrée Simon, Global CEO of FINCA, to explore practical, institution-level approaches that help MFIs and inclusive banks remain viable, protect their social mission, and channel climate adaptation finance to the communities that need it most.Episode ThemesThe global picture: who climate change is hitting hardestCGAP's study in Pakistan: what the data revealsFINCA's experience on the ground in PakistanHow inclusive financial institutions can adapt their products, operations, and governance to survive and serve in a climate-volatile worldWhat the sector needs from investors, donors, and governments to unlock the flow of climate adaptation finance to local communitiesAbout Our GuestsPeter Zetterli is CGAP's Green Lead, spearheading the organisation's work at the intersection of financial inclusion and climate change. With over 20 years of experience in economic and financial inclusion, much of it spent on the ground across multiple parts of Africa and China, Peter has led CGAP's work on fintech and the future of banking, merchant payments, rural agent networks, and social protection. He has also been deeply involved in shaping business models and regulatory frameworks for mobile money. Andrée Simon is the Global CEO of FINCA, overseeing the organisation's mission to end poverty through sustainable, scalable solutions driven by the needs of the communities it serves. FINCA creates opportunities for millions of people across more than 45 countries, with a focus on measurable results in income generation, resilience, and access to education. Andrée has dedicated more than 20 years to FINCA, playing a central role in shaping the organisation's growth, strategic direction, and business model transformation to create better value for customers and greater resilience across the network.Additional ResourcesIf you would like to read more on climate and financial inclusion, you can check out this collection of resources developed by CGAP.About Our SponsorWe are proud that CGAP is also the exclusive sponsor of Season 2! CGAP are a global partnership of 40+ development organisations working to advance the lives of people living in poverty through financial inclusion. Housed at the World Bank, its independent research and analysis is available to all as a global public good.Follow CGAP on LinkedIn or subscribe to its newsletter.Connect With UsDon't miss the remaining episodes of Series 2! Subscribe to Financial Inclusion Unlocked on Apple Podcasts, Spotify, or your favourite podcast app.Join the conversation on LinkedIn at Financial Inclusion Unlocked for video highlights, insights, and updates.