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Portfolio management and disclosure

Section 9 / Climate Risk Management Toolkit

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Moves from transaction-level data to portfolio analytics, scenario analysis, stress testing, and IFRS S2-aligned disclosure.

Section 9 - Portfolio management and disclosure

Source guidance

British International Investment · Original source page

Overview

Executive Summary

Section 9 covers four key modules: portfolio management, scenario analysis, climate stress testing, and IFRS S2-aligned disclosures. The section explores how FIs can use scenario analysis and stress testing to evaluate portfolio resilience, inform capital adequacy and support strategic planning. Internal dashboards and standardised data collection help turn granular risk data into actionable portfolio level insights for decision-makers. Early warning indicators and materiality thresholds support proactive risk management. The section also guides FIs in implementing IFRS S2-aligned disclosures, which are increasingly required by regulators and investors.

Section 9 is especially useful for risk teams, portfolio managers, senior management, and compliance officers seeking to embed climate risk into enterprise-wide decision-making and reporting.

Jump to modules in this section

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Article text SHA-256: a3a41d5af1942d93105bca6c79e66cf8fb16a571102298bf70f9cbf770762d93

Module 20

Strategic portfolio management

Aggregates client and transaction data into portfolio-level risk intelligence.

Working toolOutput: Portfolio climate dashboard
Guidance, tools and source materials

Included guidance

  • - Guidance 17: Typical portfolio-level climate metrics
  • - Guidance 18: Examples of climate risk monitoring dashboards

Tools

Portfolio climate dashboard

Exports

PDF and Excel

Original source materials

PDF: Portfolio metrics and dashboard examples
Open assessment

Original module guidance

Module 21

Scenario analysis

Supports portfolio-level climate scenario selection, analysis, and early warning indicators.

Working toolOutput: Scenario analysis summary
Guidance, tools and source materials

Included guidance

  • - Guidance 19: Segment and portfolio-level scenario analysis
  • - Guidance 20: Early warning indicator examples

Tools

Scenario analysis workspace

Exports

PDF and Excel

Original source materials

PDF: Scenario diagrams, segment analysis rubric, and early warning indicators
Open assessment

Original module guidance

Module 22

Climate stress testing

Guides physical and transition shock design, impact modelling, and management reporting.

Working toolOutput: Stress testing report
Guidance, tools and source materials

Included guidance

  • - Guidance 21a: High-level approach to physical risk stress testing
  • - Guidance 21b: High-level approach to transition risk stress testing

Tools

Tool 7a-7d: Climate stress testing for physical and transition shocks

Exports

PDF and Excel

Original source materials

Word: Climate stress testing approach and physical/transition guides
Open assessment

Original module guidance

Module 23

IFRS S2-aligned disclosures

Maps governance, strategy, risk management, metrics, and targets to IFRS S2-aligned disclosure readiness.

Working toolOutput: Disclosure readiness checklist
Guidance, tools and source materials

Included guidance

  • - IFRS S2 disclosure standard
  • - Governance, strategy, risk management, metrics and targets readiness

Tools

Tool 8: Checklist for IFRS S2-aligned disclosures

Exports

PDF and Excel

Original source materials

Excel: IFRS S2-aligned disclosure checklist
Open assessment

Original module guidance

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