An integrated framework for climate risk management and reporting in contemporary business reality

Unofficial AI-generated summary based on the public title and abstract. Not an official translation.

🔬研究者:Provides a conceptual synthesis linking ERM, accounting, and disclosure that can inform future empirical studies on climate risk management effectiveness.

🏢実務担当者:Offers a structured framework to help corporate sustainability teams design climate risk management processes that meet regulatory expectations and improve reporting credibility.

🏛政策担当者:Highlights gaps in risk governance and assurance that can inform future regulatory design for climate reporting standards.

This paper develops an integrated framework for climate risk management, positioning accounting and reporting systems not merely as accountability mechanisms but as key drivers of change in internal risk management processes. This study aims to clarify how firms translate climate-related regulatory requirements and carbon neutrality commitments into substantive governance, risk management and reporting practices. The study adopts a conceptual and integrative approach, drawing on enterprise risk management (ERM) principles (particularly ISO 31000), accounting and reporting frameworks (e.g. European Sustainability Reporting Standards, TCFD) and prior literature on climate disclosure, governance and management. It synthesises regulatory developments within the EU sustainable finance framework and connects them with ISO 31000 to develop an analytical framework for managing and reporting climate risk. The analysis identifies five interrelated challenges that constrain the effectiveness of climate risk management. Risk governance remains underdeveloped, requiring stronger board oversight and organisational capacity. Risk assessment is limited by data constraints, scenario ambiguity and difficulties in capturing the systemic and long-term nature of climate risks. Risk treatment is characterised by increasing complexity in designing adaptation strategies and addressing emerging financial risk exposures, including insurance gaps and risk-financing requirements. Reporting practices continue to face credibility concerns, while the absence of standardised metrics and integrated assurance processes undermines the reliability and comparability of disclosed information. By linking accounting and reporting systems to ERM, the study provides a structured framework for understanding how regulatory pressures translate into organisational change and support the integrated management of contemporary risk challenges.

• semanticscholar https://doi.org/10.1108/medar-04-2026-3901first seen 2026-06-21 05:36:05