Understanding Climate Risk
Understanding Climate Risk is the capacity to interpret and assess the potential threats and impacts influenced by climate-specific variables on operations, investments and stakeholders. It encompasses the knowledge of climate science, output modeling, and the capability to formulate mitigation strategies. This capability is key to decision-making, contributing to the sustainability and resilience of the organization in an ever-evolving environmental landscape.
Foundational
At a foundational level you are aware of how climate risks can affect your daily work and understand the basic principles behind climate-related impacts on the organization. You recognize the importance of considering climate factors in organizational decisions and seek guidance when needed. This awareness helps you contribute to a culture of responsible risk management and sustainability.
Developing
At a developing level you are beginning to recognize how climate risks can influence your work and wider organizational outcomes. You can identify basic climate-related threats and seek guidance to understand their relevance to ESG goals and strategy. Your growing awareness helps you support experienced colleagues in managing emerging climate risks.
Proficient
At a proficient level you are able to identify climate-related risks and opportunities that could affect your area of responsibility, and use climate science and data to inform your decisions. You consider the impacts on operations, investments, and stakeholders, recommending practical actions to manage risk. Your work improves the organization’s resilience and sustainability in a changing climate.
Advanced
At an advanced level you are able to analyze complex climate risks and integrate them into organizational risk frameworks, using detailed climate models and scenario analysis. You advise leaders on climate-related threats and opportunities, shaping decisions that build resilience. Your expertise helps future-proof the organization’s operations and investments against evolving climate challenges.
Expert
At an expert level you are trusted to lead complex assessments of climate risks, anticipating and interpreting their implications across all organizational activities. You use advanced knowledge of climate science and modeling to inform risk management and sustainability strategies. Your insight shapes high-level decisions, strengthening resilience and supporting ESG and risk goals organization-wide.
