Sustainability continued
Risk management
TCFD recommended disclosure
NCC Group disclosure
Developments in FY22
Focus areas for FY23
Risk management
• Climate related risks are managed through our Enterprise Risk Management framework • Climate related risks are documented, mitigating actions considered, a risk rating assigned and associated actions documented and followed up • Climate related risks are managed through our Enterprise Risk Management framework
• Climate related risks identified and categorised over the short, medium and long term • Climate related risks identified with associated actions which are being actively followed up
• Monitor actions arising from risk register
A. D escribe the organisation’s processes for identifying and assessing climate related risks. B. D escribe the organisation’s processes for managing climate related risks.
• Monitor actions arising from risk register
• Climate related risks identified with associated actions which are being actively followed up
• Monitor actions arising from risk register
C. D escribe how processes for identifying, assessing and managing climate related risks are integrated into the organisation’s overall risk management.
Having identified and assessed our climate related risks based on short (<1 year), medium (1–5 years) and long-term (>5 years) horizons and categorised them into physical and transition risks (see Strategy section) we have determined that climate change is not currently a significant risk for NCC Group. However, we have included a climate related risk within our Principal Risks section as it is a key reporting area; see page 71. The ERM Committee has reviewed the risks, their mitigations, controls and associated actions and will continue to monitor these going forward.
Climate related risks are managed through our NCC Group Enterprise Risk Management (ERM) framework as published on our website and included in the Risk Management section in this report. All risks are assessed and scored in terms of likelihood and impact in line with our framework on a consistent basis. We adopt both a “top-down strategic” and “bottom-up operational” approach to managing risk in the pursuit of our strategic objectives. The approach is one of collaboration and we believe this is the most efficient and effective way to identify risks.
Secure leadership buy-in
Establish Committee oversight
Integrate into reporting
Assess financial impacts
Perform scenario analysis
Obtain assurance
Collaborate across the business
Implement internal control
Adapt ERM
Use existing tools
Solicit investor feedback
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NCC Group plc — Annual report and accounts for the year ended 31 May 2022
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