Navigating Climate Risks for Business & Professional Resilience

CIOB NIGERIA HUB promotes partnership and collaborative business continuity in managing climate risks for businesses and professionals.

The hottest year on record was 2024, which every professional and business must take into account for adaptation and continuity. Risks include disruption to supply chains from floods or droughts, damage to infrastructure from rising sea levels, increased insurance costs, loss of productivity due to heatwaves, shifts in market demand due to climate regulations, and potential legal liabilities.

UNDERSTANDING PROFESSIONAL AND BUSINESS CLIMATE RISKS

Physical climate risks – the direct effects of climate change:

• Acute risks: sudden, severe events like floods, wildfires or storms that damage infrastructure.
• Chronic risks: long-term changes like rising sea levels or increasing insurance costs.

Transition climate risks – challenges as the world shifts to a low-carbon economy:

• Regulatory risks: stricter environmental policies, carbon taxes and mandatory emissions reporting.
• Technological risks: costs of adopting low-carbon innovations.
• Market risks: changing supply and demand, leading to rising material costs.
• Reputational risks: public backlash for businesses that fail to act on sustainability.

MANAGING THE RISKS

• Identify risks relevant to your business in the short (1–5 years), medium (5–10 years) and long term (10+ years).
• Engage leadership and experts to determine the most significant (material) risks.
• Assess existing controls and identify gaps.
• Integrate climate risks into your enterprise risk management framework.

HOW TO REPORT EFFECTIVELY

Align climate risk reporting with the ISSB’s IFRS Sustainability Disclosure Standards, covering Governance, Strategy, Risk Management, and Metrics & Targets (including Scope 1, 2 and 3 emissions).

ACT NOW OR REGRET LATER

Climate change is no longer a distant threat — it is a business reality. Professionals and businesses that act now will be better positioned for long-term resilience and competitiveness.

For more information or to explore how CIOB NIGERIA HUB can support your profession and businesses, please contact our team: info@ciobnigeriahub.org or call +2347064420135