CT-XS-004 — Climate Risk Assessment & Disclosure

Description

Assessment and disclosure of climate-related physical and transition risks for financial institutions, corporates, and sovereigns. Covers TCFD-aligned reporting, climate stress testing, scenario analysis, and physical risk modelling. Colombia has been a regional leader in mandating climate risk disclosure for the financial sector through the SFC.

Colombia Context

SFC Circular Externa 028 de 2022 mandates climate risk disclosure for all supervised financial entities in Colombia, aligned with TCFD recommendations. The SFC's Guía de Buenas Prácticas para la Gestión de Riesgos Asociados al Cambio Climático provides implementation guidance. Asobancaria (Colombian banking association) published sector-specific climate risk guidelines in 2023. The SFC requires banks to conduct climate stress tests assessing both physical risks (flooding in Caribe, landslides in Andina) and transition risks (stranded assets in fossil fuel sector). IDEAM's Third National Climate Communication provides the baseline climate projections (2.4°C warming by 2100 under RCP 8.5) used for scenario analysis. The SFC participates in the NGFS (Network for Greening the Financial System). Colombia's exposure to physical climate risks is high: agricultural sector losses from El Niño 2015-2016 exceeded $1 billion; Caribe flooding events cause recurring infrastructure damage. DNP estimates climate change adaptation costs at $3.6 billion/year by 2050.

EUDR Relevance

Indirect EUDR relevance: climate risk disclosure frameworks increasingly incorporate supply chain environmental risks, including deforestation. SFC Circular 028 guidance references nature-related risks aligned with TNFD recommendations.

CTH Data Coverage

Sustenttia diagnostic platform includes climate risk indicators: exposure to extreme weather events, water stress, supply chain climate vulnerability, and transition risk factors. CLP cohort assessments generate enterprise-level climate risk profiles. The CTH Platform can aggregate climate risk data for sectoral analysis supporting SFC reporting requirements.

Green Finance Alignment

TVC-aligned as enabling infrastructure — climate risk assessment is a prerequisite for TVC-compliant green finance. CSRD (EU Corporate Sustainability Reporting Directive) creates interoperability requirements for Colombian firms with EU market access. TCFD adoption is effectively mandatory for Colombian financial institutions through SFC Circular 028. IFC's EDGE framework for green buildings in Colombia integrates climate risk assessment.

{
  "origo_id": "CT-XS-004",
  "origo_label": "Climate Risk Assessment & Disclosure",
  "sector": "XS",
  "source": "origo",
  "cpi_aligned": "Climate governance \u2014 risk assessment and disclosure",
  "eu_taxonomy_aligned": "Partial \u2014 EU Taxonomy's Do No Significant Harm (DNSH) criteria require climate risk assessment; CSRD mandates disclosure",
  "cbi_eligible": "N \u2014 not a direct CBI-eligible activity",
  "iea_aligned": "N \u2014 outside IEA ETCS scope",
  "col_gf_sector": "Transversal",
  "col_gf_activity": "Evaluaci\u00f3n y divulgaci\u00f3n de riesgos clim\u00e1ticos para entidades financieras y empresas",
  "col_gf_aligned": "Y",
  "col_ndc2030_aligned": "Y \u2014 climate risk assessment underpins NDC adaptation planning and financial resilience",
  "col_sisclima_relevant": "Y",
  "col_ley2169": "Y \u2014 Art. 22 sustainable finance; Art. 23 taxonomy and disclosure requirements",
  "latam_colombia": "Y",
  "cth_clp_coverage": "Y \u2014 Sustenttia diagnostics include climate risk indicators",
  "cth_data_coverage": "Y",
  "schema_version": "1.1",
  "last_updated": "2026-05-27"
}