C4: Climate Risks
Disclosure requirements for climate-related hazards and transition events.
In brief
VSME disclosure requirement C4 addresses climate risks: the company should describe climate-related hazards, including physical risks and transition events that could affect its operations, as well as any adaptation measures. The requirement helps assess the company's vulnerability to climate change. It is part of the Comprehensive Module.
VSME Standard Reference
The following content is extracted from the official EFRAG Voluntary Sustainability Reporting Standard for non-listed SMEs (VSME), December 2024.
View original VSME Standard (PDF)Selko Insights
Practical guidance from Selko
Climate Risks Can Be Complex
Climate risk assessment—including physical hazards, transition events, and their financial implications—can be difficult for SMEs to understand and evaluate. Concepts like exposure, sensitivity, and time horizons require specialized knowledge that many smaller companies may not have in-house.
Entity-Specific Guidance from Selko
Selko offers entity-specific guidance to assist companies with climate risk identification and assessment. We help translate complex climate science into practical, actionable insights tailored to your industry, location, and business model—making C4 disclosure accessible for all SMEs.
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