Climate Risks and Opportunities Best Practice Module Fact Sheet
The Climate Risk & Opportunities Best Practice Module (Climate Module), which is free for suppliers, has been developed by givvable’s team of sustainability experts and reflects global best practice indicators.
Suppliers that have completed the module earn a tag for their profile boosting visibility in corporate and government procurement processes.
1. What are climate-related risks & opportunities and why are they relevant?
Climate-related risks refer to the potential negative effects of climate change on an entity. These are categorised as:
- climate-related physical risks, which are risks resulting from climate change that can be event-driven, such as a storm, flood, drought or heatwave (acute physical risk) or from longer-term shifts in climatic patterns, such as changes in precipitation and temperature (chronic physical risks); and
- climate-related transition risks, which are risks that arise from efforts to transition to a lower-carbon economy, including policy, regulatory, technological, market or reputational risks.
Climate-related risks can have financial implications for an organization. Depending on the type of risk, these risks may impact revenue, increase operating costs, result in asset impairments or costs from asset damage or supply-chain disruption, or change the availability of resources (among other consequences) (IFRS 2). Without proper assessment, organizations may encounter unforeseen financial losses, stranded assets, and difficulties obtaining insurance or financing.
Climate-related opportunities refer to the potential positive effects arising from climate change for an organization and can result from an organization taking action to mitigate or adapt to climate change (IFRS 2). Opportunities can include efficiency gains and cost savings, low‑emission technologies, and new products and markets in a lower carbon economy.
Assessing and addressing climate-related risks and opportunities helps organizations avoid losses, stay compliant, remain resilient, and unlock growth in the transition to a low-carbon future.
2. What is the “Climate Risks & Opportunities Best Practice Module” and why should I do it?
The adoption of IFRS Sustainability Disclosure Standards (IFRS S1 and S2) is expanding globally. An increasing number of jurisdictions are adopting or taking steps to implement the standards, contributing to a more consistent global baseline for sustainability-related financial disclosures, including information on sustainability and climate-related risks and opportunities, metrics and targets, and transition planning.
givvable's Climate Risks & Opportunities Best Practice Module assesses an organization’s alignment to best practice indicators across five key areas: Governance, Strategy, Risk Management, Metrics & Targets, and Stakeholder Engagement.
The Climate Risks & Opportunities Best Practice Module supports organizations to:
- Understand the policies and practices that reflect best practice and demonstrate to customers that they are taking action to build awareness. Businesses and governments screening supplier profiles will be able to identify whether a supplier has completed this Module.
- Identify areas of alignment with best practice, as well as gaps, and practical opportunities for improvement.
- Complete a self-assessment that can be provided to buyers (see section 3 below).
3. How will my responses be used?
Any responses provided to Best Practice Modules may be used in accordance with givvable’s Terms & Conditions. Uses may include supplementing givvable’s automated Best Practice Assessments, which are automatically populated based on a supplier’s credentials, givvable’s own research, analytics, and product development, and supporting clients using givvable’s products to vet or screen existing or prospective business partners.
Organizations that complete the Climate Risks & Opportunities Best Practice Module will receive a ‘givvable: Climate Risks & Opportunities Best Practice Module’ tag, which will appear on their givvable profile until the end of the following calendar year.
4. Where can I find more information on relevant frameworks and how organizations can manage climate-related risks and opportunities?
Climate Disclosure Frameworks and Systems
- International Sustainability Standards Board (ISSB) – IFRS S1 & IFRS S2: Global baseline for sustainability-related financial disclosures, including climate risk governance, strategy, metrics and targets.
- Task Force on Climate-related Financial Disclosures (TCFD): Framework for identifying and disclosing climate risks and opportunities across governance, strategy, risk management, and metrics. (Note: While TCFD disbanded in 2023, its recommendations remain relevant. Its four pillars — Governance, Strategy, Risk Management, and Metrics & Targets — are now fully embedded within the IFRS S1 and S2 standards issued by the ISSB).
- Global Reporting Initiative (GRI): Relevant standards include GRI 302 – Energy, GRI 305 – Emissions, and GRI 201 / 203 – Economic impacts and climate transition.
- CDP Climate Change: Global disclosure system used by companies to disclose climate risks and opportunities, emissions, climate governance, and transition plans.
Emissions Accounting and Target Setting
Greenhouse Gas Protocol: Global standard for measuring and reporting greenhouse gas emissions, including Scope 1, Scope 2 and Scope 3 emissions.
- Science Based Targets initiative (SBTi): Provides methodologies for companies to set emission reduction targets aligned with climate science and net-zero pathways.
Corporate Climate Strategy and Transition Guidance
Transition Plan Taskforce (TPT): Provides guidance for credible climate transition plans.
- Transition Plan Taskforce (TPT): Considerations on SMEs and transition plans
- World Benchmarking Alliance: Assessing the credibility of a company’s transition plan.
- ACSI/AICD guidance for boards navigating climate transition planning
Climate Risks and Scenario Analysis
TCFD recommendations – Scenario analysis
- Intergovernmental Panel on Climate Change (IPCC): Provides an overview of environment-related scenario analysis, key considerations for conducting scenario analysis – as identified by TCFD, and how CDP has incorporated scenario analysis into their questionnaires.
- Intergovernmental Panel on Climate Change (IPCC): Provides scientific climate projections and scenarios widely used for assessing long-term climate risks.
Supplier Engagement
SBTi guidance on engaging supply chain on the decarbonization journey
Just Transition
- ILO guidelines for a just transition
- World Benchmarking Alliance: Moving from pledges to implementation - a guide for corporate just transition action
ASIC Sustainability Reporting Educational Modules
United Nations Global Compact (UNGC) Resources
How can givvable help?
givvable can help you assess your suppliers on climate action:
- VET potential suppliers for actions and initiatives related to climate. Start free here.
- SCREEN existing suppliers for (i) climate‑related credentials, targets and disclosures; and (ii) climate-related risks and opportunities (Coming soon!). Book a demo today.
- ENGAGE suppliers on best practices in relation to climate-related risks and opportunities with our free Supplier Engagement Portal and Climate Risks & Opportunities Module.
Want to learn more?