Sustainability has always been at the heart of the role of the risk manager, so that their organisations are resilient to shocks and can continue to fulfil their objectives. In the 21st century, that vision has widened, because companies are increasingly asked to be good corporate citizens and to play a part in our overall adaptation to climate change. FERMA’s aim this year has been to support and promote the risk manager in ensuring the sustainability of organisations as responsible business conduct and climate change are risk management issues.
FERMA argues that:
Companies should use an enterprise-wide approach to non-financial reporting, including the associated risks.
There should be clearer guidelines for non-financial reporting. Data need to be disclosed in a way that is meaningful and comparable. The Commission have created a ‘Corporate Reporting Lab’ to brainstorm methods to achieve this.
In response to the public consultation on the evaluation of the EU’s Strategy on Adaptation to Climate Change earlier this year, FERMA made 3 recommendations.
- Organise an EU-wide public access to climate-related risk data.
- Promote professional risk management practice inside businesses and public entities.
- Facilitate companies in making use of the available options for financing risks related to climate change