ClimateWise

Steering Transition

The Steering Transition Principle encourages ClimateWise members to take a top-down, strategic view of climate and nature risks and integrate this thinking throughout their business models. 

Theme 1:  Governance 

Sub-Principles:

• 1.1: Ensure that our board has oversight of climate- and nature-related risk and opportunity management, including any transition plans. 
• 1.2: Ensure that our senior management has responsibility for climate- and nature-related risk and opportunity management, including any transition plans. 
• 1.3: Create a clear link between governance and oversight, establishing a robust governance framework and underlying policies and procedures. 
• 1.4: Ensure that our board and senior management have the required knowledge and incentives to oversee risks and establish a culture aware of environmental issues.

Theme 2:  Strategy 

Sub-Principles:

• 1.5: Describe the impacts and implications of climate- and nature-related risks and opportunities on our business model and performance, strategy and any decision-making processes. 
• 1.6: Describe how environmental resilience plans are incorporated into business decision-making, including disclosure of any material outcomes of climate risk scenarios. 
• 1.7: Describe the outcomes of our materiality analysis and any material climate- and nature-related risks and opportunities that affect our prospects.

Theme 3:  Risk management

Sub-Principles:

• 1.8: Establish appropriate processes to identify, assess and prioritise climate- and nature-related impacts, risks and opportunities. 
• 1.9: Put in place mechanisms to monitor and manage climate- and nature-related risks and opportunities. 
• 1.10: Describe how scenario analysis has been used to inform the identification, assessment and management of climate- and nature-related risks.

Engaging Stakeholders

The Engaging Stakeholders principle emphasises the importance of collaborating with stakeholders to enhance climate resilience and promote sustainable practice

Theme 1: Operations 

 Sub-Principles:

• 2.1: Manage and seek to reduce the environmental impacts of the internal operations and physical assets under our control. 
• 2.2: Engage our employees on our commitment to address climate change and nature, helping them to play their role in meeting this commitment in the workplace and encouraging them to make climate and nature-informed choices outside work

Theme 2: Value Chain 

Sub-Principles:

• 2.3: Understand and disclose the sources of emissions and adverse climate- and nature-related impacts on our upstream and downstream value chain that might in turn impact our business. 
• 2.4: Advocate and engage across the supply chain to encourage our suppliers to improve the environmental sustainability of their products and services, and understand the implications these have on our business.

Theme 3: Innovate & Advocate 

Sub-Principles:

• 2.5: Support and undertake research and development to inform current business strategies, develop new products, and help support and incentivise our customers and stakeholders, including affected communities, in adapting to and mitigating climate- and nature-related issues. 
• 2.6: Promote and actively engage in public debate on climate- and nature-related issues and the need for action by publicly communicating our beliefs and strategy on climate- and nature-related issues and providing support and tools to our customers/clients so that they can assess their levels of risk. 
• 2.7: Where appropriate, work with policymakers and share our research with scientists, society, business, governments and NGOs in order to advance a common interest.

Enabling Transition

This principle aims to support the transition to a sustainable economy through innovative products and services that address climate risks.

Theme 1: Investments 

Sub-Principles:

• 3.1: Integrate consideration of climate- and nature-related risks and opportunities into investment strategies and decision-making. 
• 3.2: Take action to manage the implications of climate- and nature-related risks and opportunities on, and of, our investments.

Theme 2: Underwriting

Sub-Principles:

• 3.5: Disclose the organisation’s climate- and nature-related transition plans and the objectives, priorities and commitments they are looking to address.
• 3.6: Describe how the transition plan is overseen, resourced and implemented.

Disclosing effectively

This principle highlights the need for transparent reporting on climate-related risks and opportunities to improve accountability and decision-making.

Theme 1: Measure & Monitor 

Sub-Principles:

• 4.1: Measure and disclose the impacts and potential impacts on our business of material climate- and nature-related risks and opportunities, including the results of the resilience analysis. 
• 4.2: Disclose the metrics used to measure and manage our contribution to climate- and nature-related risks, and targets for monitoring progress.

Theme 2: Report Robustly 

Sub-Principles:

• 4.3: Maintain and enhance a robust reporting regime, processes and internal controls over climate-related disclosures in order to avoid material errors or material misstatements.

Theme 3: Disclosure Transparently 

Sub-Principles:

• 4.4: Annual submission against the ClimateWise Principles.
• 4.5: Annual public disclosure of the climate-related disclosures including ClimateWise Principles as part of annual reporting.
• 4.6: Ensure reports are easy to understand, accurate, prudently and neutrally presented, well explained and allow organisations to be held to account.