What is a climate risk management framework?

A climate risk management framework is fundamentally a structured process for identifying, assessing, and managing risks associated with climate change. This framework provides organizations with the necessary tools and methodologies to systematically address the potential impacts of climate-related events and trends on their operations, financial performance, and overall sustainability.

The core purpose of such a framework is to improve resilience and adaptability in the face of climate uncertainties. It often involves a systematic analysis to understand vulnerabilities, followed by the development of action plans that may include risk mitigation strategies, adaptation measures, and ongoing monitoring. The structured nature of the framework ensures that climate risks are integrated into decision-making processes, enhancing the organization's ability to respond proactively rather than reactively.

In this context, a casual approach to managing environmental issues fails to capture the rigor and analytical depth required to effectively tackle climate risks, while a focus on promoting fossil fuels or increasing urban development does not align with the goals of sustainability and risk management. Therefore, the emphasis on a structured and organized approach is essential, making "a structured process for managing climate risks" the correct characterization of a climate risk management framework.