Receive our newsletter – data, insights and analysis delivered to you
  1. Finance
  2. Risk management
26 July 2021updated 05 Nov 2021 9:19am

International organisations must improve their climate risk assessments – report

The universal implementation of risk management systems and other tools will help international organisations improve their assessment of climate risk, say think tanks E3G and Chatham House.

By Energy Monitor Staff

Several major international organisations have inadequate tools in place for assessing climate risk, say think tanks E3G and Chatham House in a new report.

One such tool, enterprise risk management (ERM), had only been implemented by 15 of 22 international organisations surveyed in the report.

UN-building-New-York

People walk past UN headquarters on the East Side of Manhattan in New York City, June 2021. (Photo by Daniel Slim/AFP via Getty Images)

ERM encompasses a variety of processes for identifying, prioritising and acting upon risks at an institutional level, and has been acknowledged by the UN as an “essential element of good governance”, states the report.

In 2006, the UN General Assembly passed a resolution endorsing the adoption of ERM across the UN. However, organisations such as the World Trade Organisation and the International Monetary Fund have no ERM systems in place.

Beyond ERM, eight international organisations have introduced another tool publicly available risk registers where they document the likelihood and impact of potential risks. Only six of those risk registers feature climate risks as challenges that need to be managed, the report says.

The report recommends international organisations be monitored via independent review to ensure comprehensive risk management processes are present across the board.

Content from our partners
How investing in Scotland can help to drive a low-carbon future
Beyond smart: How the grid-interactive building will form an essential component of the new energy system
The power of gaming: Inside Abu Dhabi’s winning esports ecosystem

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. Switch on the week and Switch it off again with our round-up, sent Mondays and Fridays
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU