Climate Lens to Business Model Red Flags

With support from the Generation Foundation, Shift updated and expanding its Business Model Red Flags tool. As part of this effort, Shift partnered with BSR, with the support of the Laudes Foundation, to incorporate a climate lens into relevant parts of the tool.

This climate lens responds to growing recognition that climate change, and action to address it, can intensify and extend the range of human rights risks — including those embedded in business models themselves, if left unaddressed. Using business models as an entry point, companies and financial institutions can better understand where climate and human rights challenges intersect. This will enable them to engage with their business partners on human rights within climate strategies and transition planning, as well as to build more holistic and robust approaches to value creation. This subset of the overarching update and expansion includes 14 climate-linked Red Flags — 13 updated and one new — each illustrated with examples of corporate action and material consequences that have arisen where a business has failed to mitigate the risks inherent in its business model.

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