Incorporate sustainability considerations into the organisation's risk process.
To what extent do you integrate sustainability into your risk assessment process?
Momentum is growing for organizations to formally and transparently articulate the risks that climate change poses to the value of their assets and their future profitability. The Task Force on Climate-related Financial Disclosures (TCFD) has emerged as a response to this call for action, empowering companies to more effectively measure and evaluate their own risks and those of their suppliers and competitors. The TCFD promotes “consistent, comparable, reliable, clear, and efficient” voluntary climate-related financial disclosures, and has developed comprehensive recommendations and resources in support of this. These resources focus on governance, strategy, risk, metrics, targets, and the use of scenario analysis for evaluating climate-related financial risks and opportunities.
The work of the TCFD has culminated in a comprehensive Final Recommendations report and several supplemental reports, including a Technical supplement, which provides in-depth information and tools for using scenario analyses to understand the strategic implications of climate-related risks and opportunities to your organization.
This report goes beyond identifying the risks (failure of climate change mitigation and adaptation, fiscal crises in emerging economics, food crises, water crises, etc.) to considering the interconnections between them, and speculating on how they may play out in the future. This may help you in thinking through what these large-scale systemic risks might mean for your organisation.
Use this tool to quickly assess a potential risk. It will guide you through the process of considering the consequences and likelihood of the risk occurring, as well as strategies for mitigation. This tool is part of a 'Getting Started' toolkit on community engagement for managers in mining exploration and development companies, but may be useful for practitioners in other industries as well.
The Water Risk Filter uses 32 annually-updated, peer reviewed data layers alongside a risk questionnaire to help you explore, understand, prioritise, and respond to water risks at specific sites. It is designed to be easy to use by non-water experts, and is the only water risk tool to assess both basin and operational risks. The filter is also aligned with leading watership stewardship frameworks, as well as the UN Sustainable Developent Goals.
You can use this tool to estimate the amount of revenue that could potentially be lost due to the impact of water scarcity on your organisation's operations. It is a free tool developed by ECOLAB and Trucost. It draws on global basin-level water data, and will help you determine water risk at a facility level.
Ceres’ Investor Water Toolkit is comprehensive resource for evaluating and acting upon water risks in investment portfolios. Written for investors by investors, this guide includes links to knowledge resources, databases, analyses, case studies, and other tools that help quantify and mitigate water risks.
Launched by the Environmental Defense Fund, the Supply Chain Solutions Center is a “crowdsourced” knowledge resource hub. The library’s current focus is on agriculture, energy, chemicals, waste, forests, and freight, and provides sustainability resources, best practices, case studies, reports, executive interviews, strategy templates, webcasts, and news that will support you in learning about these issues, assessing risk, setting goals, measuring, and reporting. The Solutions Center also brings together sustainability and supply chain professionals, creating a space where platform users can connect and collaborate with other experts.
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