Climate Governance

🔖 A learning reflection

Today I am in week 2 of a 4 week AICD course into Climate Governance, covered risk and opportunities and governance and incentives. In the reading there was a statement relating to climate risk having its finger prints on everything which is so interesting to consider as an enterprise risk practitioner.

As someone who is still learning about how to integrate climate considerations into risk frameworks, I have picked out a few questions.

First for organisations:

🌿 Is our board informed and confident in handling climate risks and opportunities?
🌿 Are climate risks incorporated into our board governance charters, processes and agendas?
🌿 Who in our executive team is responsible for managing climate risks?
🌿 How are we mitigating physical risks like asset damage and supply chain disruptions?
🌿 What steps are we taking to manage economic transition risks, including regulatory changes and technological advancements?
🌿 Are we meeting the environmental sustainability expectations of our customers and community?
🌿 Are we aligning our climate credentials with the values of our employees?

And now for my friends in, or advising, Risk Functions:
🍃 What processes do we have in place to identify and assess climate risks?
🍃 How are we integrating climate risk management into our broader risk framework?
🍃 What resources and expertise do we need to effectively manage climate risks?

One thing I heard today is no data is perfect, there is no perfect answer, but that does not mean that no action is okay.

♻ Off to do some recycling and check my solar panels are optimised while I ponder this further…

August Advisory