Many organisations are already familiar with the Enterprise Risk Management (ERM) frameworks, like the COSO or ISO 31000 (links provided below). They identify new risks and opportunities and manage them through the Risk Register. To assess the risks and opportunities, they typically use the Risk Matrix Approach, whereby the likelihood of occurrence and intensity (severity) of financial impact within a given time horizon (usually short-term) are assessed. Following the generic risk formula: risk = likelihood x intensity (severity), hotspots can be identified and prioritised for a risk response plan.
Because of the uncertainty around the exact timing and severity of climate change impacts, and the challenges and complexities associated with the transition to a low-carbon economy, the Task force on Climate-related Financial Disclosure (TCFD) recommends the use of forward-looking climate scenario analysis. Companies can use some of the pre-defined scenarios, like IPCC's RCPs and SSPs for physical risks, or IEA's scenarios for transition risks.
A response strategy is a mapping of actions to priority topics.
Threat response actions can be:
a) Avoid the risk
b) Mitigate the risk
c) Transfer the risk
d) Accept a risk that occurs periodically
e) Escalate the risk.
Opportunity response actions can be:
a) Exploit the opportunity
b) Enhance the opportunity
c) Share the opportunity
d) Accept the opportunity
Organisations use their Enterprise Risk Management structures and processes to identify, assess, manage, monitor and communicate risks. Climate-related risks should be integrated into the traditional ERM function/tool.
2016 and 2019
were the hottest years recorded so far in Singapore
(MSE)
+1.4 °C up to +4.6°C
projected daily mean temperature's increase by 2100 compared to 2000's.
(MSE)
The main used Enterprise Risk Management frameworks are:
* The COSO Integrated ERM Framework (it can be be supplemented by COBIT in the area of information security)
TCFD guidance and recommendations on how to conduct a scenario analysis
For further reading: research paper on ERM
South Pole has been at the forefront of decarbonization since 2006, developing and implementing comprehensive strategies that turn climate action into long-term business opportunities for Fortune 500 companies, governments and organizations around the world.
South Pole is more than a consultancy, its team of 1,200+ experts have developed projects, as well as designed innovative tools across finance, climate neutral APIs, and carbon offset solutions to help clients reach their carbon mitigation and Net Zero goals.
To date South Pole has worked with over 1,000 clients, and will soon have developed 800 offset projects across 30 offices globally.
Our solutions have created tens of thousands of jobs in developing countries, hundreds of millions of dollars for business, improved brand value and better living and working conditions for countless people in vulnerable communities around the world.
SustainableSG was started in September 2018 to accompany companies, non-profit entities and government agencies to review and implement effective and sustainable corporate strategies. Our services include:
Sustainao supports companies in their sustainability journey by building an impactful strategy, embedding sustainable practices across operations, and reporting performance to stakeholders.
Our sustainability consulting services are designed in a continuous improvement process:
.png)
ACTIVATE - DESIGN - ACCELERATE. Our expert consulting services and trainings help business leaders understand the complexities of sustainability, consider climate- and nature-related risks and opportunities to make informed decisions and alleviate the administrative burdens of:
We work directly with SMEs or collaborate with other sustainability consulting companies on specific projects. We are actively involved in networks of sustainability professionals who share knowledge with public and educate other professionals to bring awareness and accelerate the transition in Singapore and worldwide (incl. The Matcha Initiative, Climate Fresk, etc.).
Our unique strength stems from understanding sustainability from the risk management perspective, creating a business case and using financial reasoning to adopt sustainable business practices and decarbonize.
At Tulyā, we are accredited sustainability consultants holding certifications in GRI, SASB and TCFD (now IFRS-ISSB), and ISO 14064 GHG Lead Verifiers, alongside being Singapore Certified Management Consultants. We are dedicated to driving sustainable business development across industries through Sustainable Management Accounting.
We help MNCs with:
We help SMEs with:
