Climate has rightly been central to the conversation around sustainable infrastructure for much of the past decade. However, infrastructure performance is also shaped by interconnected environmental and social factors. AIIB’s 2025 Sustainability Report reflects this broader lens, showing how these factors can affect long-term asset and portfolio performance.
Factors such as water availability, biodiversity loss, community resilience and demographic change can all influence whether assets continue to deliver economic and social value over the long term.
Understanding those connections is important because they influence not only how infrastructure performs, but how effectively it serves the communities and economies that depend on it.
A renewable energy project may face water constraints. A transport corridor may depend on ecosystems that are increasingly under pressure. Urban infrastructure may be affected as much by demographic and social trends as by changing climate conditions.
Infrastructure does not experience these pressures in isolation. The way they interact often provides the clearest indication of long-term resilience. For investors with multi-decade horizons, this is becoming increasingly important. Consistent, comparable data helps investors assess sustainability-related risks and opportunities and make more informed decisions.
As understanding of infrastructure resilience evolves, sustainability reporting is evolving alongside it. Our second ISSB-aligned Sustainability Report builds on this shift, moving from a climate-focused foundation toward a broader view of sustainability-related risks and opportunities.
AIIB’s assessment now includes a wider set of environmental and social disclosures alongside climate-related risks. The expanded disclosures address the requirements of IFRS S1 while continuing our climate-related reporting under IFRS S2.
Rather than looking at climate in isolation, the assessment considers how issues such as biodiversity degradation, nature dependency, social and climate-related risks, and resource constraints may influence long-term portfolio resilience. The result is a more comprehensive and transparent view of the forces that can shape infrastructure outcomes for decades to come.
The report advances this approach in several practical ways: through broader materiality assessment and scenario analysis, expanded financed emissions disclosures, the first disclosure of AIIB’s Treasury ESG Investment Framework, and clearer links between sustainability and the Bank’s strategic priorities.
First, we extended our materiality assessment beyond climate to environmental and social risks across the Bank’s Investment Operations and Treasury portfolios, while adding scenario analysis for environmental risks in relevant exposures. Under the assessed scenarios, the estimated financial impacts remained immaterial relative to the Bank’s net assets. The results give investors a clearer view of potential portfolio exposure.
The report also expands financed emissions disclosures. Reported coverage of the non-CRF outstanding Investment Operations portfolio increased from 27% to 53%, while coverage of the Treasury investment portfolio increased from 94% to 99%. This gives investors greater visibility into financed greenhouse gas emissions associated with AIIB’s lending and investment activities.
Furthermore, AIIB’s Treasury ESG Investment Framework has been disclosed for the first time. The framework brings sustainability considerations into liquidity management, from screening and investment assessment through to ongoing monitoring. With 99.2% of the portfolio invested in issuers assessed as having negligible to medium ESG risk, it illustrates how sustainability is embedded into day-to-day investment decisions rather than treated as a standalone exercise.
Finally, the report connects these disclosures to AIIB’s strategic priorities. In 2025, 71% of AIIB financing supported climate-related investments, demonstrating continued alignment between sustainability and the Bank's strategic priorities. In addition, AIIB’s sustainability disclosures have contributed to improvements in our ESG Risk Rating from a leading ESG rating provider, while maintaining Low Risk assessment, which should reinforce market confidence in the Bank's reporting practices.
Ultimately, the lesson is not that climate has become less important, but that it is part of a much larger picture.
Infrastructure has always operated within environmental, social and economic systems. What is changing is our ability to better understand how those systems interact and how they shape long-term infrastructure outcomes.
By strengthening transparency and comparability, AIIB’s expanded sustainability disclosures help investors better understand sustainability-related risks and opportunities. For AIIB, this is closely linked to our mission of financing Infrastructure for Tomorrow. Delivering infrastructure with lasting economic and social value requires a deeper understanding of the environmental, social and climate-related systems that shape long-term performance. The report provides a clearer account of how these considerations inform decisions across the Bank, while acknowledging the methodological limitations and work that remain.
As sustainability reporting continues to evolve, increased consistency and comparability of disclosure can support more informed assessment and capital allocation. For AIIB, that means continuing to strengthen the disclosures, data and decision-making practices that support sustainable infrastructure investment and long-term development outcomes.
