No Match Found
The disruptive impacts of climate change are undeniable. As new risks and opportunities emerge, it’s clear that business sentiment is shifting. The next challenge for many now is bridging the information gap: organisations want to bring climate considerations into their core operations, but often feel unsure of their next move. We see it as our role to work with businesses to articulate the role of climate change in creating sustainable value.
By bringing climate change into the heart of corporate governance, organisations are better able to recognise risks and opportunities as they emerge.
Following our work with the World Economic Forum (WEF), we have developed a Climate Governance Maturity Framework. This framework builds on the WEF’s Climate Governance Principles, and acts as an assessment of how well climate risks and opportunities are embedded within an organisation’s central governance framework.
It helps uncover areas where ESG governance and reporting can be improved, and equips businesses with a toolkit to assess their maturity of climate governance against each of the WEF’s eight Principles.
Taking a systematic approach, businesses can understand how well-suited their existing governance is at detecting, monitoring and managing climate change risks and opportunities, relative to the climate risk profile of the organisation.
On a practical level, the framework can be used:
The framework begins with the eight principles and associated guiding questions previously published by the World Economic Forum. The definition for each principle is provided at the top of each page of the maturity framework.
These columns are followed by specific risk-based questions to be asked during the maturity assessment and examples of expected processes. Processes to identify, manage and mitigate climate-change risks may diverge significantly from the ‘expected processes’ given are not meant to be exhaustive.
Finally, the framework includes columns where the outcomes of the assessment can be documented. These columns simply represent one possible approach to documentation against the framework; the framework is not designed to be overly prescriptive around the approach taken by organisations.
A business diagnostic using the eight Principles of the Maturity Framework would consider management of inherent risks. Actual processes would then be compared against the examples laid out below, evaluating the effectiveness of each. These risks are set out below using the example principle of leadership Incentivisation (Principle 6):