Climate & Nature Stress Test in Colombia

Title : Climate & Nature Stress Test in Colombia
Reference : 100013974
Process : RFP

Deadline For Applications : 07 Nov 2025 16:00

Date documents can be requested until : 29 October 2025 16:00
Title : Climate & Nature Stress Test in Colombia
Procurement No. : 100013974
Process : RFP
Description : GGGI Colombia invites eligible firms/entities to submit their proposals for the assignment: “Climate & Nature Stress Test in Colombia.”

PROJECT BACKGROUND:

In recent years, Colombia has made significant progress in greening its financial sector, including the development of a national green taxonomy, the introduction of sustainability reporting initiatives, and the integration of climate-related risks into supervisory frameworks. Despite these advances, important gaps remain in translating international standards—such as IFRS S1/S2 and the Taskforce on Nature-related Financial Disclosures (TNFD)—into actionable national regulations and supervisory tools.
Under the UK PACT-funded project Enhancing Climate and Nature Risk Management and Sustainable Finance in Colombia, the Global Green Growth Institute (GGGI) is working with regulatory authorities to align Colombia’s financial system with emerging international frameworks. The project provides technical assistance to strengthen the management of climate- and nature-related risks and to ensure that Colombia’s regulatory architecture supports sustainable financial flows that contribute to biodiversity conservation and climate resilience. A key component of the project involves supporting the Financial Superintendence of Colombia (SFC), the Ministry of Finance, and Colombia’s Central Bank in reviewing and updating existing regulatory instruments to reflect global best practices. This includes leveraging the findings of Colombia’s forthcoming climate and nature stress test and identifying regulatory entry points for mainstreaming ESG, climate, and biodiversity considerations into financial policies.
Within the framework of the UK PACT-funded project “Promoting Green Finance and Climate Risk Management in Colombia”, a specialised consulting firm is required to design and implement a climate and nature stress test to inform the Colombian financial authorities. This exercise should build on the methodological foundation of the climate stress test (CST) conducted in 2021 by the SFC and the World Bank, avoiding duplication and leveraging its findings, while expanding the scope to incorporate a bottom-up approach that addresses several limitations in data and model availability. In particular, this entails improving on macroeconomic approaches by disaggregating exposures into detailed information at the corporate, enterprise, SME, and household levels, as well as considering the geospatial component of physical risk. Additionally, the firm should calibrate climate- and nature-related risk variables based on the guidance of the Network for Greening the Financial System (NGFS) and the Taskforce on Nature-related Financial Disclosures (TNFD), as relevant for the exercise.
The stress test aims not merely to fill critical data gaps on exposure to climate- and nature-related risks across Colombia’s financial actors—including banks, insurers, pension funds, national development banks, and microfinance institutions—but rather to generate robust, data-driven evidence that highlights the relevance of integrating these considerations into financial regulation and supervisory practices. Such evidence will also support alignment with emerging international disclosure standards, such as the International Financial Reporting Standards (IFRS) S1 on general sustainability-related disclosures, IFRS S2 on climate-related disclosures, and the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD). In doing so, these parameters will help strengthen the regulatory framework by informing ecosystem-wide reporting on how climate- and nature-related variables are impacting Colombia’s financial sector.

Objective: Design, develop, and implement a climate and nature stress test model that will quantify and monetize the Colombian financial sector's exposure to risks associated with climate change and nature, providing a technical input for regulators to strengthen risk management within the country's regulatory and supervisory framework, through data reporting mandates for their constituents.

Proposed Activities and Scope of Work

1) Proposed Activities for the Overall Project

The selected firm must carry out the following activities, in close coordination with the GGGI team, the Colombian Financial Superintendency, the Ministry of Finance and Public Credit, the Banco de la República (Colombia’s central bank and a member of the Network for Greening the Financial System, NGFS), and other relevant stakeholders:

a) Review and analysis of the 2021 climate stress test conducted by the SFC and the World Bank, identifying methodological aspects, assumptions, and data used.

b) Methodological adjustment to incorporate physical and transition risks associated with nature (TNFD), with calibration based on data reported through IFRS S1, IFRS S2, and TNFD standards.

c) Calibration of macroeconomic, biodiversity, and NGFS climate scenarios through variables relevant to the Colombian context.

d) Collection, processing, and validation of data from relevant sources.

e) Execution of the stress test and analysis of results as well as model limitations.

f) Preparation of actionable recommendations to strengthen regulatory and supervisory frameworks for climate- and nature-related reporting and risk management.

g) Stakeholder engagement and capacity building: organize and facilitate at least two in-person and two virtual workshops (methodology validation, preliminary results, capacity building, public dissemination).

h) Preparation and submission of the final technical report and annexes (methodology, results, datasets, models, regulatory roadmap, and GESI/GEDSI analysis).

2) Scope of Work

Objective:
• Design, develop and implement an integrated Climate & Nature Stress Test that quantifies and monetizes the Colombian financial sector’s exposure to climate- and nature-related risks to inform regulators and strengthen supervision.
Coverage / Beneficiaries
• Full financial-system coverage: commercial banks, national development banks, insurance companies, pension funds, and microfinance institutions (via sector associations and authorities). Relevant authorities: Financial Superintendency of Colombia (SFC), Ministry of Finance and Public Credit, and Banco de la República.
Methodology requirements
• Build on (but not duplicate) the 2021 SFC–World Bank exercise; prefer a bottom-up or hybrid approach with geospatial physical-risk mapping.
• Jointly design scenarios and harmonize macroeconomic assumptions with the Central Bank for traceability (GDP, inflation, FX, interest rates).
• Integrate physical, transition and biodiversity shocks (e.g., deforestation, ecosystem degradation, water stress) and uninsured losses into the macro-financial framework.
• Apply Value-at-Risk and Loss-Given-Default approaches across credit, investment and insurance portfolios; include macroeconomic multipliers and sensitivity analysis.
Standards & references
• Align and calibrate the methodology with NGFS guidance, IFRS S1 / IFRS S2, TNFD (including LEAP), IPBES inputs for biodiversity, and Colombia’s SARAS supervisory framework so outputs are actionable for disclosure and supervision.
GESI (Gender Equality & Social Inclusion)
• Mainstream GEDSI: disaggregate impacts (gender, region, sector, enterprise size), ensure representative participation of vulnerable groups in workshops, include a transversal GESI analysis and regulatory recommendations.
Deliverables, timetable & payment milestones (high level)
• Duration: ~6 months from contract signature.
• Key deliverables and indicative due dates / payment:
o D1. Work plan — within 2 weeks; (10%).
o D2. 2021 review & adjusted methodology + scenarios — within 8 weeks; (25%).
o D3. Consolidated & validated database + preliminary results — within 16 weeks; (15%).
o D4. Results presentation & validation workshops — within 20 weeks; (15%).
o D5. Final technical report & recommendations — within 24 weeks; (35%).
Standards on outputs & language
• Final deliverables must follow GGGI formatting, be submitted in hard and electronic copy. Deliverable D1 and D5 must be provided in both Spanish and English; financial proposal in English.
Coordination, supervision & quality assurance
• The consultancy works under GGGI’s Sustainable Finance Senior Officer (Colombia) and must maintain continuous communication, periodic coordination meetings, and incorporate feedback from GGGI and partner authorities. Approval of deliverables will follow GGGI procedures.

For more details on the Scope of Work, please refer to the Terms of Reference (TOR) document attached.

IMPORTANT TIMELINES:
Completion of the services shall be anticipated within a maximum period of six (6) months from the commencement date of the contract and, in any case, no later than March 2026.
The tender submission deadline is 28 October 2025, 16:00 pm KST (Korean Standard Time).
If any bidder has any request for clarification on the TOR or any part of the tender documents, GGGI will be happy to clarify if they are received on or before 7 days before the deadline (namely: if the tender submission deadline is 16:00 28 October KST, then the due date for submission of request for clarification is 16:00 21 October KST).
Interested parties will be required to register their details on the GGGI e-Green Procurement Portal (https://in-tendhost.co.uk/gggi).

HOW TO OBTAIN THE DOCUMENTS:
Documents can be accessed via the e-Green Procurement Portal by selecting ‘View Details’ on the relevant notice and then clicking the ‘Tender Application’ button. If you are a new supplier, you will be required to register your details. If you have an existing account, you will need to login to the portal. Please refer to the guidance documents under the `Supplier Guidance` area of the portal for further information.

ONLINE TENDER MANAGEMENT:
Once in the Tender Management Area for the tender, there are five possible tabs: ‘Tender’, `Tender Documents`, ‘Correspondence’, ‘Clarifications’ and ‘History’. Select the 2nd tab (`Tender Documents`) where you will find useful information regarding the RFP. Scroll down to the heading ‘Tender Documents Received’ where you will be able to view / download the documents.

OPTING IN & OPTING OUT:
Please note that you may be required to ‘Opt In’ before you can start populating your response. The ‘Opt Out’ functionality will also be available throughout the duration of the tender process. Opting out will give you the option of declaring you no longer want to receive any further communication in relation to this tender along with the opportunity of providing comments and feedback for this decision. You can choose to ‘Opt In’ at any time during the tender process if you initially decided to ‘Opt Out’.

SUBMITTING YOUR RESPONSE VIA THE PORTAL:
Please note that you may be required to ‘Opt In’ to be able to submit a response through the portal. Tenderers will be required to upload any mandatory Placeholders (i.e. specified documents) within the `Tender Documents` tab. The ability to attach additional documents may also be available. Your proposal will not be submitted until you click `Submit Return`, located towards the bottom of the screen. On clicking `Submit Return`, you will receive a receipt confirming that your proposal has been submitted to GGGI.
Please read Instructions on How to submit the Proposal.

NOTIFICATION EMAILS:
To ensure you receive email alerts and notifications from our system, please add the email domain `@in-tendorganiser.co.uk` to your Safe Senders list.