The Climate Crisis
Climate risk is a financial risk requiring an organization-wide interdisciplinary approach to measure and manage it.
From the boardroom to boots and boilers - navigating climate change efficiently with data.
Current and forthcoming regulations from the EU, US SEC, the UK, Australia, and other countries require climate-related risks and disclosures to be consistent, comparable, auditable and assured annually.
These requirements need governance and oversight from inter-disciplinary teams and execution across many parts of an organization and its supply chain to collect and standardize data.
Scroll below to learn how Climeverse can help companies build effective operating models using a modern climate data platform to reduce the cost of measurement and compliance, and further minimize external assurance fees.
Climate disclosure and corporate governance implications.
Government Regulators
Executive participation is necessary considering that current and proposed regulations in major markets, explicitly and implicitly, drive corporate accountability - in the manner and substance of disclosure, expectations of due diligence, and carbon taxation.
Key Participants
CFO / finance team
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Sustainability team
Risk and Compliance
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Internal Audit
Investors
Investors are asking for a company's exposure and resilience to transition and physical risks, highlighting the need for in-depth analysis to evaluate climate risk at the asset and company levels. In addition, boards are facing increased investor scrutiny, and companies are at increased legal risk associated with greenwashing.
CFO / finance team
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Sustainability team
Risk and Compliance
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CEO and Board
Insurers
Insurers are rapidly incorporating climate-related considerations into underwriting. As a result, the directors, external auditors, and chief risk officers must appropriately assess and disclose climate risk, which plays into insurance costs and coverage, including impacting the Directors' and Officers' (D&O) policies.
External Auditors
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CFO / finance team
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Directors / Officers
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Risk and Compliance
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Data and insights through the lens of an enterprise value map for supporting climate-change impact decisions.
Strategic Insights
Timely decarbonization actions at points of execution:
Track carbon budgets and drawdown for high-carbon purchases.
Identify product and service mix that will require a no/low-carbon formulation, and engage suppliers to align.
Improve supply chain compliance.
Operational Awareness
Data to make significant climate-aligned decisions:
Track items with exposure to physical risks, direct and indirect.
Assess vulnerabilities, assign scores and track mitigation performance.
Track climate insurance coverage and uninsured / underinsured exposure.
Execution
Carbon dependency through the lens of corporate financial health:
Insights at the Business Unit, Legal Entity, and other COA dimensions.
Cost of carbon tagged to revenue and margin items for evaluating carbon transfer pricing and materiality.
Carbon footprint at the asset level, supporting balance sheet impact calculations.