Overview
ISO 37116:2026 – Sustainable cities and communities - Disaster risk finance - Principles and general requirements for financing ex-ante investment in risk reduction is an international standard developed by ISO. It provides a comprehensive framework for organizations seeking or providing finance to support proactive (ex-ante) investment in disaster risk reduction (DRR) for cities and communities. The focus is on the use of debt instruments such as loans and bonds to fund pre-disaster preparedness, risk mitigation, and resilience-building activities.
The standard defines key principles and general requirements for ex-ante DRR finance, supporting decision-making for financing projects, assets, and activities that address potential disaster risks. By providing eligibility criteria and process guidelines, ISO 37116:2026 aims to facilitate effective financial flows that contribute to reducing disaster-related losses and strengthening community resilience.
Key Topics
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Principles for Ex-Ante DRR Finance
ISO 37116:2026 establishes foundational principles for financing disaster risk reduction, emphasizing the cost-effectiveness of investing in risk reduction before disasters occur. It promotes treating DRR activities as an investment, not an expense, integrating risk reduction into financial and fiscal instruments.
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Types and Categories of Finance
The standard focuses on debt-based ex-ante finance instruments:
- Loans and bonds: To support organizational or project-specific DRR.
- Sovereign loans: Leveraging public funds for large-scale or governmental DRR initiatives.
- Note: Although primarily centered on debt instruments, ISO 37116:2026 can be applied alongside insurance, equity, grants, or other financial instruments.
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Eligibility Criteria and Processes
- Outlines requirements for organizations and projects to qualify for DRR finance.
- Sets out processes for evaluating, selecting, and reporting on DRR-financed activities.
- Ensures accountability, proper management of proceeds, and alignment with international DRR strategies such as the Sendai Framework.
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Stakeholder Benefits
- Clear articulation of how various stakeholders-borrowers, lenders, governments, DRR solution providers, and communities-benefit from structured, transparent, and impact-oriented DRR financing.
Applications
ISO 37116:2026 is relevant for a wide range of entities operating within cities and communities, including:
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Local & National Governments
- Securing funds for proactive disaster preparedness and resilience infrastructure.
- Integrating DRR finance into municipal investment strategies and budget allocations.
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Private Sector & Industry
- Attracting investors by demonstrating reduced disaster risk, strengthening reputation, and mitigating potential business interruptions.
- Financing and implementing resilient supply chains and operations.
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Financial Institutions & Investors
- Assessing the disaster risk profile of borrowers and projects.
- Channeling funds into projects with demonstrable DRR benefits.
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NGOs and DRR Solution Providers
- Gaining access to financing for innovation and provision of disaster risk reduction solutions.
- Supporting community-based risk reduction initiatives.
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Urban Planners & Infrastructure Developers
- Embedding DRR considerations into the design, construction, and retrofitting of critical infrastructures.
By standardizing ex-ante disaster risk finance, ISO 37116:2026 supports the achievement of global goals like the United Nations Sustainable Development Goals (SDGs) and complements climate adaptation and resilience investment strategies.
Related Standards
Organizations implementing ISO 37116:2026 may also benefit from referencing these related standards:
- ISO 37101: Sustainable development in communities - Management system.
- ISO 37123: Indicators for resilient cities.
- ISO 22301: Business continuity management systems.
- ISO 31000: Risk management guidelines.
- ISO 14097: Green finance and investment.
- Sendai Framework for Disaster Risk Reduction (2015-2030): United Nations framework aligning with the principles of proactive DRR investment.
By adopting ISO 37116:2026, cities and communities can systematically mobilize finance for disaster preparedness, prioritize proactive investment, and build a foundation for safer, more sustainable urban development.