ISO 37116:2026 PDF

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

• 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.

• 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.

• 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.

• 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:

• Local & National Governments

  • Securing funds for proactive disaster preparedness and resilience infrastructure.
  • Integrating DRR finance into municipal investment strategies and budget allocations.

• 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.

• Financial Institutions & Investors

  • Assessing the disaster risk profile of borrowers and projects.
  • Channeling funds into projects with demonstrable DRR benefits.

• NGOs and DRR Solution Providers

  • Gaining access to financing for innovation and provision of disaster risk reduction solutions.
  • Supporting community-based risk reduction initiatives.

• 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.