Climate Change Risks

We recommend signatories adapt their existing Risk Management systems to integrate Climate Change risks, both financial and physical, to ensure these are considered at the highest level and considered in strategy and planning.

What are the requirements?

2017 Statement – minimum commitments

N/A – this is relevant to the 2019 Statement only.

2019 Statement – additional commitments

To assess your climate change risks and publicly disclose them.

  • Signatories must assess and publicly disclose their climate change risks.
  • Signatories should also explain their approach to assessing climate change risk.

CLC Recommendations

We recommend signatories adapt their existing Risk Management systems to integrate Climate Change risks, both financial and physical, to ensure these are considered at the highest level and considered in strategy and planning.

We recommend using the Task Force on Climate-related Financial Disclosures (TCFD) guidance and methodology to support your assessment and disclosure methodology. This is not a requirement, but the guidance helps companies to think through the different climate-related risks and opportunities in a much deeper way than a traditional Environmental Aspects and Impacts Assessment.

What resources are available?

Task Force on Climate-related Financial Disclosures (TCFD) guidance
The Task Force on Climate-related Financial Disclosures was created by the Financial Stability Board to improve and increase reporting of climate-related financial information. Their resources support companies to assess climate-related risks through a financial lens and are designed to create decision-useful forward-looking information.

External Reporting Board Implementation Guidance
The External Reporting Board is developing new reporting standards and implementation guidance material to assist businesses required to disclose climate-related risks. We will link to these when available.

CLC Climate Change Risk Case Studies:
The CLC Case Studies provide examples of other companies who have already assessed and disclosed their climate change risks.