Climate Risk & TCFD / ISSB S2-Aligned DisclosurePillar 3 — Risk Management

Integration into Overall Enterprise Risk Management

Describe how climate risk processes are integrated into the overall ERM

Strategic context

What this element is — and why it matters

TCFD Risk Management Disclosure (c) requires organisations to describe how climate-related risk processes are integrated into overall enterprise risk management — using the same risk framework, registers, severity criteria, and reporting cadence as other ERM topics.

Integration into Overall Enterprise Risk Management

Individual significance for organisations

RM-c is the discipline check — does climate get treated as a first-class enterprise risk, or does it sit on a separate sustainability-team register that the board never sees? Mature organisations integrate; immature organisations silo.

Contribution to Climate Risk & TCFD / ISSB S2-Aligned Disclosure

RM-c connects climate risk management to the broader corporate ERM framework — ensuring climate risks compete for board attention and capital with all other enterprise risks.

Key requirements

What compliant execution looks like

Common ERM framework (COSO ERM, ISO 31000)
Single corporate risk register including climate
Common severity criteria
Common reporting cadence to board
Implementation methodology

How we implement this element

A focused 6-step methodology calibrated to deliver integration into overall enterprise risk management as a working capability — not a documented compliance artefact.

ERM Framework Alignment

Map climate-risk processes to corporate ERM framework (COSO / ISO 31000); identify duplicate or competing processes.

Risk Register Consolidation

Consolidate climate risks into corporate risk register; eliminate parallel sustainability-only registers.

Severity Criteria Alignment

Apply common severity criteria across all enterprise risks; ensure climate-risk scoring uses same scale.

Reporting Cadence Integration

Integrate climate-risk reporting into ERM dashboard; ensure board sees climate alongside operational, financial, regulatory risks.

Process Documentation

Document integrated ERM process including climate-specific steps (scenario analysis, materiality dual-axis).

Disclosure Authoring

Author RM-c per TCFD; align with IFRS S2 / CSRD ESRS.

Implementation flow

Element-implementation flow chart

Decision-gated workflow showing the actual sequence of activities — from initiation through steady-state operation — with key decision points highlighted.

Start
RM-a + RM-b processes in place
ERM Framework Review
COSO / ISO 31000 corporate framework
Risk Register Audit
Climate in corporate register?
Decision
Consolidated Register?
Decision gate
Severity Criteria Alignment
Common scale across all risks
Reporting Cadence Integration
Climate in ERM dashboard
Process Documentation
Integrated ERM with climate-specific
Disclosure RM-c Authored
Per TCFD + IFRS S2
Deliverables

What we produce

  • ERM-climate integration map
  • Consolidated corporate risk register
  • Disclosure RM-c content per TCFD
Common pitfalls

Where execution fails

  • Climate risks on parallel register, board never sees
  • Severity criteria misaligned — climate underscored
  • Reporting cadence too infrequent for material climate risks
Related elements

Explore related elements in this framework

All elements in this framework

Climate Risk & TCFD / ISSB S2-Aligned Disclosure — full element index

Implement this element

Talk to us about implementing Integration into Overall Enterprise Risk Management

We can scope this element implementation against your facility, regulatory context, and existing management-system maturity — and integrate it with the other Climate Risk & TCFD / ISSB S2-Aligned Disclosure elements you already operate.