A framework for considering climate change risks

We have identified seven key areas that require attention to enable the development and execution of a climate change risk management strategy in any organisation. Each area of focus has been used as a key section within this guide. We start by identifying the key risks and opportunities being driven or otherwise associated with climate change risk landscape covering physical, transition and liability risks which can be found in Section 1 and includes the development of a risk taxonomy and a ‘risk radar’ shown in Figure 9.

Figure 1: IRM climate change risk framework

We then look at a toolbox of techniques and approaches that help us analyse and understand your own organisation’s exposure and response. These areas of focus are not necessarily linear as different aspects will be more or less important for different types of organisations at different times. This IRM report will cover four sections (Part A), with three more sections (Part B) covered in a separate report.

Part A

1. Climate change risk landscape (Section 1) 2. Stakeholder insights and research (Section 2) 3. Materiality assessments (Section 3) 4. Strategic positioning (Section 4)

Part B

5. Governance (Section 5)

6. Mitigation and resilience planning (Section 6) 7. Risk appetite considerations (Section 7)