Climate Change Enterprise Risk Management: A Practical Guide to Reaching Net Zero Goals

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