Process for Identifying and Assessing Climate Risks
We help you describe the processes you use to identify and assess climate related risks
What this element is and why it matters
TCFD Risk Management Disclosure (a) asks your organisation to describe the processes you use to identify and assess climate related risks. That covers how often you run the process, the methodology behind it, the way you define materiality and how it connects to your broader risk management. Our team helps you design and articulate each of these.
Individual significance for organisations
Disclosure RM a is where you set out how your organisation actually identifies climate risks. Investors look for substantive processes rather than bare lists, the kind of process that surfaces emerging risks early enough to act on them.
Contribution to Climate Risk and TCFD and ISSB S2 Aligned Disclosure
Disclosure RM a is the process that sits underneath the risk identification in S a. Its quality decides whether your organisation surfaces climate risk in a structured way or leans on ad hoc detection.
What compliant execution looks like
How we implement this element
A focused six step methodology calibrated to deliver process for identifying and assessing climate risks as a working capability rather than a documented compliance artefact.
We document how your climate risks are identified through workshops, expert input, scenario analysis, scientific literature and regulatory horizon scanning.
We define your materiality criteria across financial threshold, operational severity and stakeholder concern and align them with your corporate risk matrix.
We establish an annual risk identification cycle with quarterly emergent reviews and align it with your strategic planning.
We maintain a climate risk register that records the TCFD risk types, the time horizons, the materiality scores and the ownership.
We integrate climate risks into your corporate ERM and set out the dual materiality assessment needed for CSRD compliance.
We author RM a to TCFD 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
- Documentation of your climate risk identification process
- A materiality framework with criteria
- Disclosure RM a content to TCFD
- A regulatory horizon scanning log
- A dual materiality screening worksheet per ESRS E1
- Risk identification workshop records that list the attendees
Where execution fails
- A process documented on paper but never actually executed
- A materiality threshold set so high that genuinely material risks are excluded
- Climate risks that are identified but never make it into the ERM register
- A single financial materiality lens that omits impact materiality altogether
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 Process for Identifying and Assessing 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.