Strategic Focus: A Maturity Model For Corporate Climate Risk Management
26 Apr, 2024
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Executive Summary
This report presents a climate risk maturity model that firms can use to benchmark their climate strategy and identify how to advance climate risk management. The model defines four levels of maturity across eight climate risk management activities: 1) climate crisis management and business continuity; 2) reporting and disclosures; 3) internal stakeholder engagement; 4) planning; 5) benchmarking; 6) implementation; 7) monitoring; and 8) due diligence. For each activity, the model provides criteria to evaluate maturity, with relevant supporting actions.
Firms lack clear direction on climate risk management
The model is based on prior Verdantix analysis and new desk research into the climate risk market
Advancing through four levels of climate risk maturity provides value to firms
Assessing maturity across eight climate risk management activities
Climate crisis management and business continuity
Reporting and disclosures
Internal stakeholder engagement
Planning
Benchmarking
Implementation
Monitoring
Due diligence
The model is based on prior Verdantix analysis and new desk research into the climate risk market
Advancing through four levels of climate risk maturity provides value to firms
Assessing maturity across eight climate risk management activities
Climate crisis management and business continuity
Reporting and disclosures
Internal stakeholder engagement
Planning
Benchmarking
Implementation
Monitoring
Due diligence
Figure 1. The maturity model answers questions for vendors and buyers of climate risk solutions
Figure 2. Evidence used to define digitization potential, and interpretation for climate risk management actions
Figure 3. Four levels of climate risk maturity
Figure 4. Summary of processes and outcomes defining four levels of maturity across eight climate risk management activities
Figure 5. Climate crisis management and business continuity maturity evaluation criteria
Figure 6. Actions supporting climate crisis management and business continuity
Figure 7. Reporting and disclosures maturity evaluation criteria
Figure 8. Actions supporting reporting and disclosures
Figure 9. Internal stakeholder engagement maturity evaluation criteria
Figure 10. Actions supporting internal stakeholder engagement
Figure 11. Planning maturity evaluation criteria
Figure 12. Actions supporting planning
Figure 13. Benchmarking maturity evaluation criteria
Figure 14. Actions supporting benchmarking
Figure 15. Implementation maturity evaluation criteria
Figure 16. Actions supporting implementation
Figure 17. Monitoring maturity evaluation criteria
Figure 18. Actions supporting monitoring
Figure 19. Due diligence maturity evaluation criteria
Figure 20. Actions supporting due diligence
Figure 2. Evidence used to define digitization potential, and interpretation for climate risk management actions
Figure 3. Four levels of climate risk maturity
Figure 4. Summary of processes and outcomes defining four levels of maturity across eight climate risk management activities
Figure 5. Climate crisis management and business continuity maturity evaluation criteria
Figure 6. Actions supporting climate crisis management and business continuity
Figure 7. Reporting and disclosures maturity evaluation criteria
Figure 8. Actions supporting reporting and disclosures
Figure 9. Internal stakeholder engagement maturity evaluation criteria
Figure 10. Actions supporting internal stakeholder engagement
Figure 11. Planning maturity evaluation criteria
Figure 12. Actions supporting planning
Figure 13. Benchmarking maturity evaluation criteria
Figure 14. Actions supporting benchmarking
Figure 15. Implementation maturity evaluation criteria
Figure 16. Actions supporting implementation
Figure 17. Monitoring maturity evaluation criteria
Figure 18. Actions supporting monitoring
Figure 19. Due diligence maturity evaluation criteria
Figure 20. Actions supporting due diligence
About the Authors
Emma Cutler
Principal Analyst
Emma is a Principal Analyst at Verdantix, with a current research agenda focusing on solutions for climate risk management. She has a background in simulation and statistical …
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Ryan Skinner
Research Director
Ryan is a Research Director at Verdantix, where he leads a team of analysts delivering research, data and advisory services that help clients navigate the fast-evolving landsc…
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