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.
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.