Develop and execute a resilient climate change enterprise risk strategy that can be tailored to any organization with this essential guide for risk professionals and business leaders.
Climate Change Enterprise Risk Managementequips readers with a practical roadmap for how organizations can integrate climate change into their enterprise risk strategy. It offers guidance on how to secure a robust framework that can identify and manage climate threats and opportunities for a business, how to increase the visibility of climate risk management activities at board level, and how and when to implement techniques such as thresholds, mitigation strategies, monitoring capabilities and risk appetite metrics. The book covers both existing best practice risk management tools and how they can be adapted for climate enterprise risk management as well as new interdisciplinary tools like stakeholder mapping. Climate Change Enterprise Risk Management is richly supported by global examples, interviews and case studies representing a wide range of companies and industries including the insurance, finance, infrastructure, oil and gas, legal and auditing sectors.
This is a must-read for all risk professionals and business leaders involved in developing and executing enterprise risk management and strategy. It will also be valuable reading for students taking modules on enterprise risk management and climate change, sustainable business and risk management.
Author(s): Martin Massey, Clive Thompson
Publisher: Kogan Page
Year: 2022
Language: English
Pages: 432
City: New York
Cover
Contents
Acknowledgments
Foreword
Introduction
01 Climate change risk landscape and ERM maturity
Introduction
1.1 Climate change risk management enablers
1.2 Climate change and ESG integration
1.3 Global macro risk and climate change
1.4 Key drivers and expectations for organizations
1.5 Developing a climate change risk taxonomy
1.6 Climate change integration into an existing ERM framework
1.7 Developing a climate change risk maturity model
Conclusion
Notes
02 Climate strategic positioning and risk appetite integration
Introduction
2.1 Corporate strategy and purpose
2.2 Developing a climate risk strategy
2.3 Core dimensions of climate strategy
2.4 Developing a climate risk strategy plan and road map
2.5 Risk appetite strategy
2.6 Integration of climate change into risk appetite
2.7 Climate change risk appetite reporting
Conclusion
Notes
03 Developing an effective climate governance framework
Introduction
3.1 Role of the board in risk management
3.2 Alignment to stakeholder expectations
3.3 Climate change governance risk framework
3.4 Building a good risk culture
3.5 Integrated risk culture model
Conclusion
Notes
04 Climate change risk identification techniques, including stakeholder mapping
Introduction
4.1 Risk identification process
4.2 Risk articulation
4.3 Risk universe and risk taxonomy – definitions and importance
4.4 Risk identification processes, techniques and enablers
4.5 Stakeholder analysis and mapping
4.6 Framework to prioritize climate stakeholders
Conclusion
Notes
05 Managing transition risks
Introduction
5.1 Global perspective on carbon emissions
5.2 Sources of greenhouse gas (GHG) emissions
5.3 Setting and achieving net zero targets – society’s responses
5.4 Global drivers of change
5.5 Global mitigation concerns and options
5.6 Carbon/sustainability risk management framework
5.7 Carbon assessment process – use and availability of tools
5.8 The carbon hierarchy
5.9 Monitoring and reporting carbon emissions and targets
5.10 Setting milestones of progress
Conclusion
Notes
06 Building climate resilience
Introduction
6.1 Key climate drivers and industry impacts
6.2 Building climate resilience
6.3 Developing a climate resilience framework
6.4 Climate resilience guidance and frameworks
6.5 Organizational climate resilience process
6.6 Specific risk management controls to improve operational climate resilience
6.7 Building financial resilience
Conclusion
Notes
07 Climate physical risks – data sources, uses and challenges
Introduction
7.1 Applications of weather and climate data
7.2 Climate data and global projections
7.3 Evolution of climate data, meteorology and climate models
7.4 The climate data value chain
7.5 Main climate data variables, data types and availability
7.6 Climate data sources
7.7 Climate data modelling tools and techniques
7.8 Catastrophe risk modelling
7.9 Parametric index solutions
Conclusion
Notes
8 Designing an effective emerging climate risk management process
Introduction
8.1 Forecasting and the role of risk management
8.2 Emerging risk definitions
8.3 Traits and characteristics of emerging risks
8.4 The role of a formal emerging risk management process
8.5 Uses and benefits of emerging risk management
8.6 Key objectives of developing a framework for managing emerging risks
8.7 Current risk management guidance and standards
8.8 Emerging risk tools and techniques
8.9 Emerging risk management process
8.10 Emerging climate risk reporting
Conclusion
Notes
09 Emerging climate trends, issues and challenges
Introduction
9.1 Global macro trends
9.2 Physical risks – emerging trends
9.3 Transition risks – high-level overview
9.4 Climate and ESG reporting and ‘greenwashing’
9.5 Emerging technologies to meet net zero targets
9.6 Liability risks – emerging climate change litigation
Conclusion
Notes
10 Climate stress and scenario testing
Introduction
10.1 Evolution of stress and scenario analysis – impact of financial crisis
10.2 Developing a formal stress and scenario framework
10.3 Design of climate scenario considerations and benefits
10.4 Regulatory guidance and expectations
10.5 Setting the baseline
10.6 Climate scenario analysis framework
10.7 Types of qualitative and quantitative tools
Conclusion
Notes
11 Climate risk integration into specific business processes
Introduction
11.1 Alignment with business strategy
11.2 Mapping the risk profile to business activities
11.3 Operational risk processes
11.4 Credit risk management
11.5 Development of a sustainable investment strategy
11.6 Investment strategy of investors
Conclusion
Notes
12 Financial reporting and climate disclosures
Introduction
12.1 Climate change’s evolutionary effect on how to account for risk
12.2 The purpose of climate disclosures
12.3 The evolution and future direction of climate-related financial disclosures
12.4 TCFD – main disclosure requirements
12.5 TCFD summary of recommendations and benefits for organizations
12.6 Current main disclosure observations and trends
12.7 Reporting disclosure information and alignment to TCFD recommendations
12.8 Use of sensitivity analysis for transition scenarios in reporting
12.9 Alignment with financial reporting
Conclusion
Notes
Glossary
Index
