Develop climate adaptation guide for suppliers

The company identified climate change as a growing risk to its operations and recognized that long-term climate resilience depends on the preparedness of its entire value chain. Suppliers, particularly those in Tier 1 textile production, face increasing physical climate risks that may affect continuity, quality, and cost of operations. To address this, the company established a strategy focused on enhancing climate awareness, building adaptive capacity, and enabling suppliers to identify and respond to climate-related threats.

Location of the initiative: Brazil

The company developed a climate adaptation guide for its supplier chain in 2024. The material was created through a collaborative process involving suppliers and subject-matter experts. It translates technical climate concepts into accessible guidance and provides tools for assessing physical climate risks, identifying opportunities, and developing action plans aligned with TCFD recommendations.

The guide includes:

• A step-by-step method for analyzing climate threats using IPCC climate models

• Region-specific climate risk insights for Brazil

• Best practices for adaptation relevant to the textile industry

• Practical tools for suppliers to assess risks and create adaptation plans

Sustainability Impact

Climate

The guide serves as an enabler by helping suppliers anticipate and manage risks such as extreme weather events, resource availability, and operational disruptions. This contributes to long-term climate resilience across the value chain.

Nature

By enabling suppliers to identify and prepare for climate-related risks (e.g., heatwaves, flooding), the initiative helps reduce negative environmental impacts such as resource overuse, supply instability, and land degradation.

Social

Improved climate resilience across the value chain reduces risks of production interruptions, potential job impacts, and community-level economic disruption. It also strengthens supplier awareness of social vulnerabilities linked to climate events.

Business Impact

Benefits

• Strengthens supply chain resilience to physical climate risks

• Improves continuity and reduces potential climate-related disruptions

• Enhances supplier capability and awareness

• Aligns value chain practices with global frameworks (TCFD)

Costs

Costs primarily relate to research, expert engagement, co-creation workshops, and dissemination activities. These vary by depth of analysis and regional modeling requirements. No major operational cost increases are expected for suppliers using the guide. Costs can be minimized by leveraging existing climate databases, technical partnerships, and digital distribution.

Typical Business Profile

Relevant for:

• Companies with extensive supplier networks

• Textile, apparel, or consumer goods supply chains

• Organizations at early to intermediate maturity levels in climate-risk management

• Businesses operating in regions highly exposed to physical climate impacts

Approach

1. Risk Identification

   • Use climate scenario modeling (IPCC) to identify key climate threats affecting Tier 1 suppliers.

   • Analyze data provided directly by the supply chain.

2. Supplier Listening

   • Conduct active listening sessions to understand supplier challenges and knowledge gaps.

3. Content Co-creation

   • Collaborate with experts to translate technical concepts into practical guidance.

   • Present regional threats across Brazil.

   • Include a method for developing adaptation action plans.

   • Align the guide with TCFD guidelines.

4. Dissemination

   • Launch at the Supply Chain Sustainability Innovation Fair.

   • Distribute through official company channels.

Stakeholders Involved

• Project Leads: Sustainability and supply chain teams

• Company Functions: Procurement, supplier management, sustainability

• Main Providers: Climate risk experts and technical consultants

• Others: Tier 1 suppliers participating in listening sessions and co-creation

Key Parameters to Consider

• The guide uses established climate-science models (IPCC scenarios)

• Development and launch occurred over approximately one year

• No technical prerequisites required for suppliers to use the guide

• Relevance is highest in regions facing physical climate risks

• Regulatory alignment with TCFD enhances credibility

• Digital distribution supports broad access

Implementation and Operations Tips

• Provide training or webinars to help suppliers apply the guidance

• Maintain ongoing engagement to update risk data as climate scenarios evolve

• Encourage suppliers to integrate adaptation planning into operational processes

• Monitor usage metrics (views, downloads) to improve future editions