Acknowledgments |
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xii | |
Foreword |
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xiii | |
Introduction |
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1 | (5) |
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01 Climate change risk landscape and ERM maturity |
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6 | (24) |
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7 | (1) |
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1.1 Climate change risk management enablers |
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8 | (1) |
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1.2 Climate change and ESG integration |
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9 | (1) |
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1.3 Global macro risk and climate change |
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10 | (6) |
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1.4 Key drivers and expectations for organizations |
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16 | (5) |
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1.5 Developing a climate change risk taxonomy |
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21 | (3) |
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1.6 Climate change integration into an existing ERM framework |
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24 | (2) |
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1.7 Developing a climate change risk maturity model |
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26 | (4) |
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28 | (1) |
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29 | (1) |
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02 Climate strategic positioning and risk appetite integration |
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30 | (26) |
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31 | (1) |
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2.1 Corporate strategy and purpose |
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31 | (1) |
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2.2 Developing a climate risk strategy |
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32 | (4) |
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2.3 Core dimensions of climate strategy |
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36 | (3) |
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2.4 Developing a climate risk strategy plan and road map |
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39 | (3) |
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2.5 Risk appetite strategy |
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42 | (2) |
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2.6 Integration of climate change into risk appetite |
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44 | (10) |
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2.7 Climate change risk appetite reporting |
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54 | (2) |
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54 | (1) |
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55 | (1) |
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03 Developing an effective climate governance framework |
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56 | (38) |
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57 | (1) |
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3.1 Role of the board in risk management |
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57 | (2) |
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3.2 Alignment to stakeholder expectations |
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59 | (2) |
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3.3 Climate change governance risk framework |
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61 | (21) |
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3.4 Building a good risk culture |
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82 | (4) |
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3.5 Integrated risk culture model |
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86 | (8) |
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92 | (1) |
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92 | (2) |
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04 Climate change risk identification techniques, including stakeholder mapping |
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94 | (30) |
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95 | (1) |
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4.1 Risk identification process |
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95 | (2) |
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97 | (3) |
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4.3 Risk universe and risk taxonomy - definitions and importance |
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100 | (2) |
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4.4 Risk identification processes, techniques and enablers |
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102 | (6) |
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4.5 Stakeholder analysis and mapping |
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108 | (12) |
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4.6 Framework to prioritize climate stakeholders |
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120 | (4) |
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121 | (1) |
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122 | (2) |
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05 Managing transition risks |
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124 | (38) |
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125 | (1) |
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5.1 Global perspective on carbon emissions |
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126 | (1) |
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5.2 Sources of greenhouse gas (GHG) emissions |
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127 | (2) |
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5.3 Setting and achieving net zero targets - society's responses |
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129 | (4) |
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5.4 Global drivers of change |
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133 | (6) |
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5.5 Global mitigation concerns and options |
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139 | (4) |
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5.6 Carbon/sustainability risk management framework |
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143 | (6) |
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5.7 Carbon assessment process - use and availability of tools |
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149 | (1) |
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150 | (4) |
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5.9 Monitoring and reporting carbon emissions and targets |
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154 | (5) |
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5.10 Setting milestones of progress |
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159 | (3) |
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159 | (1) |
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160 | (2) |
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06 Building climate resilience |
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162 | (40) |
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163 | (1) |
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6.1 Key climate drivers and industry impacts |
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164 | (2) |
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6.2 Building climate resilience |
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166 | (4) |
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6.3 Developing a climate resilience framework |
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170 | (7) |
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6.4 Climate resilience guidance and frameworks |
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177 | (2) |
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6.5 Organizational climate resilience process |
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179 | (6) |
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6.6 Specific risk management controls to improve operational climate resilience |
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185 | (11) |
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6.7 Building financial resilience |
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196 | (6) |
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199 | (1) |
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199 | (3) |
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07 Climate physical risks - data sources, uses and challenges |
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202 | (34) |
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203 | (1) |
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7.1 Applications of weather and climate data |
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203 | (2) |
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7.2 Climate data and global projections |
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205 | (3) |
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7.3 Evolution of climate data, meteorology and climate models |
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208 | (3) |
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7.4 The climate data value chain |
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211 | (5) |
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7.5 Main climate data variables, data types and availability |
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216 | (4) |
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220 | (3) |
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7.7 Climate data modelling tools and techniques |
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223 | (2) |
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7.8 Catastrophe risk modelling |
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225 | (5) |
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7.9 Parametric Index Solutions |
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230 | (6) |
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234 | (1) |
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234 | (2) |
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08 Designing an effective emerging climate risk management process |
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236 | (30) |
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236 | (2) |
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8.1 Forecasting and the role of risk management |
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238 | (1) |
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8.2 Emerging risk definitions |
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239 | (2) |
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8.3 Traits and characteristics of emerging risks |
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241 | (1) |
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8.4 The role of a formal emerging risk management process |
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242 | (1) |
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8.5 Uses and benefits of emerging risk management |
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243 | (2) |
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8.6 Key objectives of developing a framework for managing emerging risks |
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245 | (2) |
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8.7 Current risk management guidance and standards |
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247 | (3) |
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8.8 Emerging risk tools and techniques |
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250 | (4) |
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8.9 Emerging risk management process |
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254 | (5) |
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8.10 Emerging climate risk reporting |
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259 | (7) |
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263 | (1) |
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264 | (2) |
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09 Emerging climate trends, issues and challenges |
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266 | (34) |
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266 | (1) |
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267 | (4) |
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9.2 Physical risks - emerging trends |
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271 | (11) |
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9.3 Transition risks - high level overview |
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282 | (2) |
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9.4 Climate and ESG reporting and `greenwashing' |
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284 | (3) |
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9.5 Emerging technologies to meet net zero targets |
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287 | (5) |
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9.6 Liability risks - emerging climate change litigation |
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292 | (8) |
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295 | (1) |
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296 | (4) |
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10 Climate stress and scenario testing |
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300 | (34) |
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300 | (1) |
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10.1 Evolution of stress and scenario analysis - impact of financial crisis |
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301 | (1) |
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10.2 Developing a formal stress and scenario framework |
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302 | (1) |
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10.3 Design of climate scenario considerations and benefits |
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303 | (1) |
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10.4 Regulatory guidance and expectations |
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304 | (4) |
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10.5 Setting the baseline |
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308 | (1) |
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10.6 Climate scenario analysis framework |
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309 | (9) |
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10.7 Types of qualitative and quantitative tools |
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318 | (16) |
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332 | (1) |
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332 | (2) |
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11 Climate risk integration into specific business processes |
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334 | (31) |
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334 | (1) |
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11.1 Alignment with business strategy |
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335 | (8) |
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11.2 Mapping the risk profile to business activities |
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343 | (1) |
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11.3 Operational risk processes |
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344 | (6) |
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11.4 Credit risk management |
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350 | (1) |
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11.5 Development of a sustainable investment strategy |
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351 | (6) |
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11.6 Investment strategy of investors |
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357 | (8) |
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362 | (1) |
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363 | (2) |
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12 Financial reporting and climate disclosures |
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365 | (33) |
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365 | (1) |
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12.1 Climate change's evolutionary effect on how to account for risk |
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366 | (3) |
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12.2 The purpose of climate disclosures |
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369 | (1) |
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12.3 The evolution and future direction of climate-related financial disclosures |
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370 | (2) |
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12.4 TCFD - main disclosure requirements |
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372 | (7) |
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12.5 TCFD summary of recommendations and benefits for organizations |
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379 | (5) |
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12.6 Current main disclosure observations and trends |
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384 | (4) |
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12.7 Reporting disclosure information and alignment to TCFD recommendations |
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388 | (3) |
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12.8 Use of sensitivity analysis for transition scenarios in reporting |
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391 | (1) |
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12.9 Alignment with financial reporting |
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392 | (6) |
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394 | (1) |
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395 | (3) |
Glossary |
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398 | (4) |
Index |
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402 | |