Deep Dive into the Recommendations Flashcards
To describe the board’s oversight of climate R&O, what should you disclose? (Governance)
Processes and frequency by which board is informed about climate issues. Whether the board considers climate issues when reviewing strategy and setting objectives. How the board monitors progress toward climate goals.
To describe management’s role re: climate R&O, what should you disclose? (Governance)
Whether the organization has assigned climate responsibilities to managers. Processes by which management is informed about climate issues. How management monitors progress toward climate goals.
To describe the climate R&O the organization has identified, what should you disclose? (Strategy)
Describe relevant time horizons, taking into consideration the useful life of the organization’s assets and infrastructure. Describe the specific climate issues that can materially impact the organization. Describe the processes used to determine which R&O could be material.
To describe the impact of climate R&O on the business, strategy, and financial planning, what should you disclose? (Strategy)
Describe how the climate R&O will affect products and services, supply/value chain, adaptation activities, investment in R&D, and operations. Describe how climate issues serve as an input to financial planning, the time periods used, and how the R&O are prioritized.
What areas should factor into disclosure about the impacts of climate R&O on financial planning?
Operating costs and expenses. Capital expenditures and allocation. Acquisitions or divestments. And access to capital.
To describe the resilience of the organization’s strategy, what should you disclose? (Strategy)
Describe how their strategy fares within a scenario analysis of a transition to a low-carbon economy consistent with 2-degrees-C or lower. Describe where the strategy might be affected by climate R&O, how the strategy might change, and the scenarios and time horizons considered.
To describe the organization’s processes for identifying and assessing climate risks, what should you disclose? (Risk Management)
Describe how the organization determines the relative significance of climate risks. Describe whether they consider existing and emerging regulatory requirements. Disclose processes for assessing the potential size and scope of risks, and definitions of risk terminology and frameworks used.
To describe the organization’s processes for managing climate risks, what should you disclose? (Risk Management)
Describe how they make decisions to mitigate, transfer, accept, or control the risks. Describe how risks are prioritized and how materiality determinations are made.
To describe the metrics used to assess climate R&O, what should you disclose?
List metrics relating to water, energy, land use, and waste management. Describe whether metrics are incorporated into remuneration policies. Provide carbon prices and metrics relating to lower-carbon economy products. Provided metrics from historical periods and calculation methodologies.
To describe targets used to manage climate R&O, what should you disclose?
List targets for GHG emissions, water, energy, and waste. Include efficiency and financial goals, loss tolerance, avoided GHG emissions and goals designed for transition to a lower-carbon economy.
