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Climate Risk and TCFD and ISSB S2 Aligned DisclosurePillar 3, Risk Management

Integration into Overall Enterprise Risk Management

We help you describe how your climate risk processes are integrated into your overall ERM

Strategic context

What this element is and why it matters

TCFD Risk Management Disclosure (c) asks your organisation to describe how your climate related risk processes are integrated into your overall enterprise risk management, using the same risk framework, the same registers, the same severity criteria and the same reporting cadence as every other ERM topic. Our team helps you achieve and demonstrate that integration.

Integration into Overall Enterprise Risk Management

Individual significance for organisations

Disclosure RM c is the discipline check. It asks whether climate is treated as a first class enterprise risk or left sitting on a separate sustainability team register that the board never sees. Mature organisations integrate it while less mature ones leave it siloed.

Contribution to Climate Risk and TCFD and ISSB S2 Aligned Disclosure

Disclosure RM c connects your climate risk management to your broader corporate ERM framework, so that climate risks compete for board attention and for capital alongside every other enterprise risk.

Key requirements

What compliant execution looks like

A common ERM framework such as COSO ERM and ISO 31000
A single corporate risk register that includes climate
Common severity criteria across all risks
A common reporting cadence to the board
Climate risks competing for capital within the same prioritisation process
Internal audit assurance over the integrated climate risk process
Implementation methodology

How we implement this element

A focused six step methodology calibrated to deliver integration into overall enterprise risk management as a working capability rather than a documented compliance artefact.

ERM Framework Alignment

We map your climate risk processes to your corporate ERM framework, whether COSO or ISO 31000, and identify any duplicate or competing processes.

Risk Register Consolidation

We consolidate your climate risks into the corporate risk register and eliminate any parallel sustainability only registers.

Severity Criteria Alignment

We apply common severity criteria across all your enterprise risks so that climate risk is scored on the same scale as everything else.

Reporting Cadence Integration

We integrate climate risk reporting into your ERM dashboard so the board sees climate alongside the operational, financial and regulatory risks.

Process Documentation

We document the integrated ERM process including the climate specific steps such as scenario analysis and the dual axis materiality assessment.

Disclosure Authoring

We author RM c to TCFD and align it with IFRS S2 and CSRD ESRS.

Implementation flow

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.

Start
RM a and RM b processes in place
ERM Framework Review
The COSO or ISO 31000 corporate framework
Risk Register Audit
Is climate present in the corporate register
Decision
Consolidated Register
Decision gate
Severity Criteria Alignment
A common scale across all risks
Reporting Cadence Integration
Climate placed in the ERM dashboard
Capital Prioritisation
Climate competes within the same process
Process Documentation
An integrated ERM with climate specific steps
Internal Audit Assurance
An independent review of the integration
Disclosure RM c Authored
To TCFD and IFRS S2
Deliverables

What we produce

  • An ERM and climate integration map
  • A consolidated corporate risk register
  • Disclosure RM c content to TCFD
  • An aligned severity and likelihood scoring rubric
  • An integrated ERM dashboard that shows climate alongside the other risks
  • An internal audit assurance report on the integration
Common pitfalls

Where execution fails

  • Climate risks kept on a parallel register that the board never sees
  • Severity criteria left misaligned so that climate is scored too lightly
  • A reporting cadence too infrequent for material climate risks
  • Climate left out of capital prioritisation so the integration is nominal only
Standards & references

Codes this element is built on

TCFD Risk Management GuidanceISO 31000 2018 (Risk Management Principles)COSO ERM 2017 FrameworkISO 31000 2018 Clause 5 (integration into organisational processes)IFRS S2 (integration into overall risk management)EU CSRD ESRS 2 (risk management process disclosure)
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, then integrate it with the other Climate Risk and TCFD and ISSB S2 Aligned Disclosure elements you already operate.