Given the potential for climate change to destabilize the global economy, the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) was established to enhance information to investors, lenders and insurers so that the risk, and opportunity, is recognized, assessed and priced in. The following index provides links to ERM’s disclosures on climate-related risks and opportunities as recommended by the TCFD.
In this report, we also provide separate GRI and UN Global Compact indexes.
Governance
Disclose the organization's governance around climate-related risks and opportunities.
| Disclosure | Link | Additional Information |
| Describe the board's oversight of climate-related risks and opportunities. | During FY20, ERM senior Partners presented to our Board and Executive Committee on the strategic implications of climate change and the low carbon economy transition (LCET). As a result, our company is making a significant investment in this area, and we are developing global and regional plans with our Regional Leadership Teams and Account Directors across the company to support and implement this strategic direction. As one of ERM’s material sustainability topics, climate change and the LCET is integrated into our business strategy for the marketplace as well as how we manage our own operations. | |
| Describe management's role in assessing and managing climate-related risks and opportunities. |
A Senior Leadership Team (SLT) Working Group has been established with senior operational and technical leaders from across the business to provide oversight and guidance on the implementation plan to meet the science-based targets for 2025. This oversight includes operational considerations related to climate risk, as well as setting out the organizational roadmap for climate risk responses. The SLT Working Group reports on a regular basis into the Executive Committee Sustainability Working Group, which is accountable for ERM's materiality assessment and resulting mitigations and performance management. Climate risk has been identified as a material issue for ERM, and is therefore addressed by this group. The Executive Committee Sustainability Working Group includes the CEO, who is also a member of the Board of Directors. |
Strategy
Disclose the actual potential impacts of climate-related risks and opportunities on the organization's businesses, strategy, and financial planning where such information is material.
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Disclosure |
Link |
Additional information |
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Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term. |
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As part of our approach to meeting our science-based targets, we are identifying short, medium and long-term risks and opportunities. |
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Describe the impact of climate-related risks and opportunities on the organization's businesses, strategy, and financial planning. |
We are adapting our business to best align to client requirements for support in transition to a low carbon economy. |
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Describe the resilience of the organization's strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario. |
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In FY21, ERM will progress our internal scenario analysis to test the resilience of our business model as part of our efforts to meet our science-based targets. |
Risk management
Disclose how the organization identifies, assesses and manages climate-related risks.
| Disclosure | Link | Additional information |
| Describe the organization's processes for identifying and assessing climate-related risks. | ||
| Describe the organization's processes for managing climate-related risks. | ||
| Describe how processes for identifying, assessing and managing climate-related risks are integrated into the organization's overall risk management. | ERM has conducted a physical risk assessment of all our office locations and modeled where weather-related events may impact operations. This is now factored into the planning of office emergency management plans around the world. We consider the impact of climate change on our clients' businesses and respond accordingly, for example, by modifying our service offerings and the blend of sectors in our portfolio. |
Metrics and targets
Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material.
| Disclosure | Link | Additional information |
| Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process. | ||
| Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas emissions and the related risks. | ||
| Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets. |