// ESG & Sustainability

ESG Risk Management

Bring ESG and climate risk into the risk framework the business already runs on.

Identification, assessment and integration of ESG and climate risks into enterprise risk management, with ownership, appetite and monitoring rather than a parallel register.

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// Context

Why this matters

ESG risk is frequently managed outside the enterprise risk framework, in a separate register maintained by a sustainability function. That arrangement rarely influences decisions, because the risks are not competing for attention alongside everything else the board considers.

Integrating them changes the question from whether ESG risks exist to how they rank against operational, financial and strategic risks the organisation already manages.

It also exposes where the organisation has no appetite statement, no owner and no control for exposures it has been disclosing publicly.

// The engagement

How CER helps

ESG and climate risk identification across physical, transition, regulatory, operational and reputational categories
Integration into the existing enterprise risk management framework and taxonomy
Risk assessment against defined likelihood and impact criteria
Time-horizon analysis across short, medium and long term
Risk appetite and tolerance definition
Control assessment and gap identification
Risk ownership assignment
Key risk indicator design and monitoring
Board and committee reporting design
Scenario consideration where relevant to the organisation

// Deliverables

What you receive

ESG and climate risk register integrated with the enterprise risk framework
Risk assessment results by likelihood, impact and time horizon
Control gap assessment
Risk appetite statement covering ESG and climate exposures
Key risk indicators with thresholds
Governance and reporting structure
Board risk paper

// Fit

Who this is for

Risk and compliance functions integrating ESG into enterprise risk management
Financial institutions assessing climate risk in their own operations and portfolios
Listed companies disclosing climate risk under reporting requirements
Boards with disclosed risks that have no assigned owner

// Why CER

Practitioners, not report writers

CER works from Singapore with organisations across Asia, which matters for this service because requirements arriving from European regulators, regional supervisors and local listing rules do not align neatly.

Engagements run through to implementation: the data collection process, the documentation, the controls and the internal handover, so that the second cycle is cheaper than the first and can be run without us.

Where an organisation would be better served by building the capability internally, CER Academy delivers the same technical material as training.

Meet the people behind the work

// Our people

Expertise on this service

Raymond Cheung

Advisor & Lead Trainer

Over twenty years in actuarial science and risk management, working across ESG, sustainability and ESG investment.

Actuarial science · Risk management · ESG and sustainability

View Raymond Cheung’s profile

Chan Ee Chong

Lead Consultant

Over twenty years in wealth management and business consultancy, with ESG project experience across South-East Asia.

ESG advisory · Wealth management · Business consultancy

View Chan Ee Chong’s profile

// Questions

Frequently asked

What is the difference between physical and transition risk?

Physical risk arises from climate impacts themselves -- acute events such as flooding, and chronic shifts such as heat or water stress. Transition risk arises from the response to climate change: policy, carbon pricing, technology shifts, market and reputational change.

Should ESG risk sit in a separate register?

Generally no. A separate register tends to be reviewed separately, and therefore not prioritised against the risks that drive decisions. Integration is what gives these risks standing.

Do we need climate scenario analysis?

It depends on your sector, size and reporting obligations, and it is more meaningful for some business models than others. We assess whether it would produce a decision-useful result for you before recommending it.

How does this relate to sustainability reporting?

Climate disclosure requires you to describe your risk management process. If that process does not exist, the disclosure has nothing to describe. Building the risk framework first makes the disclosure straightforward.

// Related