Management's Role in Assessing and Managing Climate Risks
We help you describe management's role in assessing and managing climate related risks and opportunities
What this element is and why it matters
TCFD Governance Disclosure (b) asks you to describe management's role in climate. That covers the responsibilities of your Chief Risk Officer, Chief Sustainability Officer or equivalent function, the reporting lines they sit within and the processes they use to assess and manage climate risk. Our team helps you define and document each of these clearly.
Individual significance for organisations
Accountability at management level is what turns a board commitment into operational reality. Organisations with a named management owner deliver substantive climate programmes, while those without one rely on dispersed accountability that delivers compliance and little more.
Contribution to Climate Risk and TCFD and ISSB S2 Aligned Disclosure
Disclosure G b operationalises the board oversight you set out in G a. It also lays the structural foundation for your Risk Management disclosures in Pillar 3 by naming who actually does the work.
What compliant execution looks like
How we implement this element
A focused six step methodology calibrated to deliver management's role in assessing and managing climate risks as a working capability rather than a documented compliance artefact.
We designate a single accountable management owner, whether a CRO, CSO, COO or equivalent, and align the role with your corporate structure.
We define the reporting line into the board or its committee per G a and specify the cadence and content of the reports.
We identify or establish the climate relevant management committees you need, such as a Risk Committee, a Sustainability Steering group and a Capital Committee.
We document the process for climate risk assessment and management, covering identification, evaluation, response and monitoring.
We integrate the climate assessment with your corporate Enterprise Risk Management and specify how it enters the ERM risk register.
We author disclosure G b to TCFD, weave it into your annual sustainability and TCFD report and align it with IFRS S2 and CSRD ESRS.
Element implementation flow chart
A decision gated workflow that shows the actual sequence of activities from initiation through steady state operation, with key decision points highlighted.
What we produce
- A management owner role description with a climate scope
- Climate committee charters
- Disclosure G b content to TCFD and IFRS S2
- Terms of reference for the cross functional working group
- A RACI for climate risk assessment and management
- A management climate KPI scorecard
Where execution fails
- Climate ownership dispersed across several functions with no single owner
- A reporting line to the board that exists on paper while no actual reporting happens
- Shallow ERM integration that leaves climate on a separate register
- No management KPIs, so climate work proceeds without accountability
Codes this element is built on
Explore related elements in this framework
Climate Risk and TCFD and ISSB S2 Aligned Disclosure full element index
Talk to us about implementing Management's Role in Assessing and Managing Climate Risks
We can scope this element implementation against your facility, regulatory context, and existing management system maturity, then integrate it with the other Climate Risk and TCFD and ISSB S2 Aligned Disclosure elements you already operate.