Executive Summary
Section 4 emphasises that robust governance is essential for meeting regulatory, investor, and stakeholder expectations, and for building organisational resilience. A climate risk maturity assessment helps FIs identify strengths and gaps, guiding strategic improvements and demonstrating progress to stakeholders. Governance frameworks ensure climate risk is integrated into decision-making, with clear roles and responsibilities. A formal climate risk management policy sets out how climate risks are managed across the organisation, defining roles, escalation procedures, and decision pathways. The risk appetite statement establishes boundaries for acceptable climate risk, supported by materiality thresholds and escalation protocols. These tools help translate strategic intent into practical actions, ensuring climate risks are consistently identified, assessed, and managed. Section 4 is especially useful for board members, senior management, risk teams, sustainability specialists, and internal auditors seeking to strengthen climate risk oversight and embed best practices across their organisations.
